Which of the following would NOT be a direct concern of working capital sensitivity?
A)accounts receivable collection period
B)inventory turnover
C)annual tax obligations
D)average age of accounts payable

Question

Quizplus · Accepted Answer

Working capital sensitivity primarily focuses on the management of current assets and liabilities in order to maintain liquidity and meet short-term obligations. Taxes are a long-term obligation and not directly related to working capital management. Therefore, annual tax obligations would not be a direct concern of working capital sensitivity. Choices A, B, and D are all directly related to working capital management.

Which of the Following Would NOT Be a Direct Concern