Every component of working capital has two dimensions: time and money.

Question

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Working capital components include inventory, accounts receivable, and accounts payable, and each of these components involves both a time and a money dimension. For example, inventory involves the time it takes to order and receive goods, as well as the money spent to purchase those goods. Similarly, accounts receivable involve the time it takes to collect payment from customers, as well as the money owed. Accounts payable involve the time it takes to pay suppliers, as well as the money owed.

Every Component of Working Capital Has Two Dimensions: Time and Money