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14 September, 13:23

Theo's BBQ has $48,000 in current assets and $39,000 in current liabilities. Decisions related to these accounts as referred to as:

a. capital structure decisions.

b. capital budgeting decisions.

c. working capital management.

d. operating management.

e. fixed account structure.

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Answers (2)
  1. 14 September, 14:36
    0
    c. working capital management.

    Explanation:

    The working capital shows a difference between the current asset and the current liabilities

    In mathematically,

    Working capital = Current assets - current liabilities

    This interprets the liquidity and financial position of the business organization that is the current assets or current liabilities are converted into cash within one year or not

    The rest decisions are depended upon the long term projects, long term growth, proper utilization of resources and fixed assets
  2. 14 September, 16:20
    0
    Option C

    Explanation:

    Working capital control refers to a business strategy aimed at ensuring that a corporation works consistently by controlling and making the best possible use of its existing assets and liabilities. Working capital management's primary purpose is to allow the business to retain an adequate cash flow to satisfy its brief-term operating costs as well as brief-term debt obligations.

    Working Capital Management includes control of the assets and liabilities of a corporation in order to retain reasonable cash flow. The strategy involves managing three ratios: working capital ratio, inventory ratio, and reserve ratio.
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