Working capital policy involves day-to-day decisions that determine all except which of the following?
A) firm's level of long-term assets
B) proportions of short-term and long-term debt used to finance assets
C) level of investment in each type of current asset
D) specific sources and mix of short-term credit the firm should employ

Question

Quizplus · Accepted Answer

Working capital policy decisions are related to the management of current assets and liabilities, such as cash, inventory, accounts receivable, and accounts payable. Therefore, these decisions do not relate to the firm's level of long-term assets, making option A the correct answer. Options B, C, and D are all aspects of working capital policy decisions.

Working Capital Policy Involves Day-To-Day Decisions That Determine All Except