Which of the following is a net working capital decision variable in the current period?
A) The current maturities of long-term debt.
B) Financing associated with a construction program that will be funded with the proceeds of a long-term security issue after the project is completed.
C) The use of short-term debt to finance long-term assets.
D) Purchasing inventory needed to meet current demand on credit.
E) None of the above.

Question

Quizplus · Accepted Answer

Purchasing inventory needed to meet current demand on credit is a net working capital decision variable in the current period. It involves managing the level of inventory to ensure that the company has enough to meet current demand while also considering the costs and benefits of holding excess inventory. The other options are related to financing decisions or the use of long-term assets and do not directly impact net working capital in the current period.

Which of the Following Is a Net Working Capital Decision