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
Solution
The term working capital management refers to the continuous flow of:
- Short-term assets
- 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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