Which of the following actions could DECREASE a firm's working capital gap?
A)reduce the age of inventory
B)reduce the age of accounts payable
C)increase the age of accounts receivable
D)All actions listed would decrease a firm's working capital gap.

Question

Quizplus · Accepted Answer

Reducing the age of inventory means a firm is converting its inventory into cash more quickly, which decreases the working capital gap by reducing the time assets are tied up before becoming cash.

Which of the Following Actions Could DECREASE a Firm's Working