Which of the following accounts are included in working capital management?
I.accounts payable
II.accounts receivable
III.fixed assets
IV.inventory
A)I and II only
B)I and III only
C)II and IV only
D)I, II, and IV only
E)II, III, and IV only

Question

Quizplus · Accepted Answer

Working capital management is concerned with the management of the company's short-term assets and liabilities. Accounts payable and accounts receivable are examples of short-term liabilities and assets respectively, while fixed assets are long-term assets. Hence, fixed assets are not included in working capital management. Inventory is another example of a short-term asset and is therefore included in working capital management. Therefore, the accounts that are included in working capital management are accounts payable, accounts receivable, and inventory, making option D the correct answer.

Which of the Following Accounts Are Included in Working Capital