Target levels for each category of current assets and how current assets will be financed are the firm's basic policies for:

Question

Quizplus · Accepted Answer

Working capital policy involves determining the desired level of each category of current assets and how they will be financed, which aligns with the given statement. Net working capital is a measure of a firm's liquidity, while strategic policy decisions are broader in scope and include long-term planning. Working capital management is the day-to-day operational management of current assets and liabilities, which is more specific than the given statement.

Target Levels for Each Category of Current Assets and How