Working capital management refers to
A) long-term financing decisions.
B) the management of cash flows.
C) investing in product development.
D) capital structure.

Question

Quizplus · Accepted Answer

Working capital management refers to managing the cash flows of a company, including the management of current assets (such as inventory and accounts receivable) and current liabilities (such as accounts payable and short-term debt). It is focused on ensuring that a company has enough cash to meet its short-term obligations and to fund its day-to-day operations. Long-term financing decisions, investing in product development, and capital structure are all related to longer-term financial planning and management.

Working Capital Management Refers to