The management of a firm's short-term assets and liabilities is called:
A)capital budgeting.
B)equity management.
C)debt management.
D)working capital management.
E)capital structure.

Question

Quizplus · Accepted Answer

Working capital management involves managing a firm's short-term assets and liabilities, such as cash, inventory, accounts receivable, and accounts payable. It is focused on ensuring that a company has enough liquidity to meet its short-term obligations and to fund its day-to-day operations. Capital budgeting, equity management, debt management, and capital structure are all related to long-term financial decisions and are not directly concerned with managing a firm's short-term assets and liabilities.

The Management of a Firm's Short-Term Assets and Liabilities Is