Question

Which one of the following is a working capital management decision? Select one: a. What type(s) of equipment is (are) needed to complete a current project? b. Should the firm pay cash for a purchase or use the credit offered by the supplier? c. What amount of long-term debt is required to complete a project? d. How many shares of stock should the firm issue to fund an acquisition? e. Should a project should be accepted?

Answer 1

Answer:

b. Should the firm pay cash for a purchase or use the credit offered by the supplier?

Explanation:

Working capital decision is the decision which includes the cash, Account receivable, Account payable, the portion of debt payable within one year. Decision related to supplier is actually related to account payable. so this is the working capital decision. Other decision involves fixed assets, long term debt, investments and projects under consideration.