Working capital management is concerned with
A) how a firm can best manage its cash flows as they arise in its day-to-day operations.
B) how a firm should raise money to fund its investments.
C) what long-term investments a firm should undertake.
D) managing a firm's capital stock.

Question

Quizplus · Accepted Answer

Working capital management focuses on the management and optimization of a company's current assets and liabilities to ensure sufficient cash flows for daily operations. It involves managing cash, inventory, accounts payable, and accounts receivable to ensure that the company has enough liquidity to meet its short-term obligations. B, C, and D are not relevant to working capital management.

Working Capital Management Is Concerned with