Question

Working capital management includes which one of the following?

1) Inventory management
2) Accounts receivable management
3) Accounts payable management
4) All of the above

Answer 1

Working capital management includes inventory management, accounts receivable management, and accounts payable management.

Step-by-step explanation:

Working capital management includes inventory management, accounts receivable management, and accounts payable management. Therefore, the correct answer is All of the above.

Answer 2

Working capital management includes Inventory management ,Accounts receivable management and Accounts payable management. Therefore, the correct option is 4) All of the above.

Step-by-step explanation:

Working capital management refers to the management of a company's short-term assets and liabilities. It involves ensuring the efficient utilization of resources to maintain liquidity while maximizing profitability. Inventory management, accounts receivable management, and accounts payable management are all integral components of working capital management.

Inventory management focuses on optimizing the levels of inventory a company holds, aiming to strike a balance between meeting demand and avoiding excess stock that ties up funds. Efficient management of accounts receivable involves monitoring and collecting payments from customers promptly to reduce outstanding receivables and improve cash flow.

Similarly, accounts payable management involves managing the company's payments to suppliers or vendors. Effectively managing accounts payable involves ensuring timely payments without harming the company's cash position by utilizing credit terms to their advantage.

Together, these components—inventory management, accounts receivable management, and accounts payable management—play crucial roles in maintaining an optimal level of working capital, ensuring that a company has sufficient liquidity to cover its short-term obligations while utilizing its resources effectively for growth and profitability. Hence, the correct answer is option 4) All of the above.