Working capital policy involves day-to-day decisions that determine all of the following EXCEPT:
A)firm's level of longterm assets.
B)proportions of short-term and long-term debt used to finance assets.
C)level of each type of current asset.
D)specific sourcers and mix of short-term liabilities the firm should employ.

Question

Working capital policy involves day-to-day decisions that determine all of the following EXCEPT:
A)firm's level of long­term assets.
B)proportions of short-term and long-term debt used to finance assets.
C)level of each type of current asset.
D)specific sourcers and mix of short-term liabilities the firm should employ.

Quizplus · Accepted Answer

Working capital policy does not involve day-to-day decisions regarding the firm's level of long-term assets. It is primarily concerned with managing current assets and liabilities. The other options listed (B, C, and D) are all factors that are considered when establishing a working capital policy.

Working Capital Policy Involves Day-To-Day Decisions That Determine All of the Following