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Which of the following statement about working capital management are TRUE?
A) Lengthening payment terms with suppliers reduces financing needs
B) Shorter payment terms for customers increase net working capital
C) Decrease in inventories increases working capital
D) Identical decrease in customer and supplier payment terms does not alter net working capital Back Next

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ogorwyne

Answer:

C and D

Explanation:

The answers from the options are:

1. Decrease in inventories increases working capital

2. Identical decrease in customer and supplier payment terms does not alter net working capital.

Working capital management is a type of strategy used in business to make sure that a company runs efficiently by using it's current assets and liabilities effectively as well as monitoring them

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