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Multiple Select QuestionSelect all that applyThe term working capital management refers to the continuous flow of _____ and _____ through an organization, which are said to be "working." (Be sure to select two items from the list.)Multiple select question.short-term assetsshort-term liabilitiesowners' equityfixed assets

Question

Multiple Select QuestionSelect all that applyThe term working capital management refers to the continuous flow of _____ and _____ through an organization, which are said to be "working." (Be sure to select two items from the list.)Multiple select question.short-term assetsshort-term liabilitiesowners' equityfixed assets

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Solution

The term working capital management refers to the continuous flow of:

  1. Short-term assets
  2. Short-term liabilities

These two items are said to be "working" as they are constantly changing in the day-to-day operations of a business. Owners' equity and fixed assets are not typically included in working capital management as they are not part of the short-term financial operations of a business.

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