Management of working capital focuses attention on
A) cash, accounts receivable, inventory, and accounts payable.
B) cash, accounts receivable, and fixed assets.
C) cash, fixed assets, and inventory.
D) accounts receivable, accounts payable, and long-term investments.

Question

Quizplus · Accepted Answer

Management of working capital involves managing the company's short-term assets and liabilities, including cash, accounts receivable, inventory, and accounts payable. The goal is to ensure that the company has enough cash flow to cover its short-term obligations while maintaining sufficient inventory levels to fulfill customer demand. Fixed assets and long-term investments are not typically part of working capital management.

Management of Working Capital Focuses Attention on