Working capital management:
A)ensures that sufficient equipment is available to produce the amount of product desired on a daily basis.
B)ensures that long-term debt is acquired at the lowest possible cost.
C)ensures that dividends are paid to all stockholders on an annual basis.
D)balances the amount of company debt to the amount of available equity.
E)is concerned with managing day to day cash flow.

Question

Quizplus · Accepted Answer

Working capital management is concerned with managing day-to-day cash flow, including monitoring and managing current assets and liabilities such as inventory, accounts receivable, and accounts payable. Options A, B, C, and D are related to other financial management areas such as asset management, capital structure, and payout policy.

Working Capital Management