Which of the following is not an element of working capital policy?
A)The amount of working capital used
B)The level of attention that top management pays to working capital issues
C)The nature and source of financing that supports working capital
D)How the components of working capital are managed
E)The extent to which working capital is supported by short versus long term financing

Question

Quizplus · Accepted Answer

The level of attention that top management pays to working capital issues is not an element of working capital policy. While management's attention to working capital may impact the effectiveness of the policy, it is not a defining characteristic of the policy itself. The other options listed (A, C, D, and E) all relate to specific aspects of working capital policy, such as the amount used, nature of financing, and management of components.

Which of the Following Is Not an Element of Working