Working capital management refers speciﬁcally to:
A) Obtaining the necessary funds to ﬁnance a ﬁrm's long term activities.
B) The daily use of a ﬁrm's ﬁxed assets to generate revenue.
C) The oversight of a ﬁrm's current accounts.
D) The management of a ﬁrm's Loan accounts from ﬁnancial institutions.
E) The utilization of a ﬁrm's assets on a daily basis.

Question

Quizplus · Accepted Answer

Working capital management refers to the management of a firm's current assets and liabilities to ensure that it has sufficient short-term liquidity to meet its operational needs. This includes overseeing the firm's current accounts, such as cash, accounts receivable, and inventory, to optimize the cash conversion cycle and minimize the cost of financing these current assets.

Working Capital Management Refers Speciﬁcally To