Respuesta :
Answer:
relation between the short terms and assets and the liabilities.
Explanation:
- The goals of the working management include the management that the forms are able to continue its operations and has sufficient ability to satisfy the both the short and upcoming debts and involves the managing of the inventories and the account reversible and the receivable payment and the cash.
Answer:
determining which customers would be granted credit
Explanation:
Working capital management refers to management of routine day to day management capital for an entity.
It is simply defined as the excess of current assets over current liabilities.
Cash, inventory, debtors, marketable securities, etc comprise of current assets which are liquid assets with maturity of less than an year.
Assessment of an enterprise's inventory turnover and average collection period from the details available of it's working capital determine how well the operations are being carried out and how promptly collection from debtors is received.
This helps the firm to evaluate the credit worthiness of it's customers/ debtors and decide whether to extend credit or modify it's credit policies.
