Working capital management is concerned with which statement of ﬁnancial position accounts?
A) Current assets only.
B) Current and long-term assets only.
C) Long-term assets only.
D) Current assets and current liabilities only.
E) Current assets, long-term assets and current liabilities only.

Question

Quizplus · Accepted Answer

Working capital management is concerned with managing a company's short-term assets and liabilities, therefore the relevant accounts are current assets (such as cash, inventory, accounts receivable) and current liabilities (such as accounts payable, short-term debt). Long-term assets and liabilities are not directly related to working capital management.

Working Capital Management Is Concerned with Which Statement of ﬁNancial