Managers Must Understand How Transactions Affect Working Capital

question 72

Multiple Choice

Managers must understand how transactions affect working capital

• A)because GAAP does not allow companies with weak working capital to obtain loans.
• B)because lenders often use this to assess a company's ability to meet current obligations.
• C)so that management can avoid transactions that increase working capital.
• D)in anticipation of meeting creditors guidelines before issuing new stock.

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