A working capital managers role is to manage: Select one: a. accounts receivable and payable only. b. cash, inventory, accounts receivable, accounts payable and risk management. c. cash and inventory only. d. inventory and accounts receivable only.

Question

Business

Johnny

6 December, 05:23

A working capital managers role is to manage: Select one: a. accounts receivable and payable only. b. cash, inventory, accounts receivable, accounts payable and risk management. c. cash and inventory only. d. inventory and accounts receivable only.

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Answers (1)

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Braxton Dickson · Answer 1

b. cash, inventory, accounts receivable, accounts payable and risk management

Explanation:

Working capital is defined as a measure that shows how a company is operating efficiently and it's ability to meet the short term financial obligations.

When a business working capital is properly managed, then the business will be healthy financially hence operate successfully and able to meet up with it's daily obligations.

A good working capital manager must be able to make use of working capital management to maintain balance between profitability, growth and liquidity. The role of working capital manager is also to manage cash, inventory, accounts receivable and payable and risk management.

A working capital manager must be able to manage cash that will be used for a business daily operation, must ensure the business inventories are properly managed and accounted for. It's duty also include risk management as he is responsible for making decisions regarding day to day finance of a business operation; the success or failure in terms of meeting up with short term financial obligation depends on him.