Exam IIA-CIA-Part3 All QuestionsBrowse all questions from this exam
Question 154

The management of working capital is most crucial for which of the following aspects of business?

    Correct Answer: A

    The management of working capital is most crucial for liquidity. Liquidity refers to the ability of a company to meet its short-term obligations, and managing working capital involves ensuring that the company has enough current assets to cover its current liabilities. Effective working capital management ensures that a business can maintain smooth operations and avoid cash flow problems, which directly impacts its liquidity.

Discussion
ElvinOption: A

Should this be liquidity? Anyone?

KonradK

Agree with you here

ZoeLeeOption: A

Working capital represents the net current assets available for day-to-day operating activities.I thinkAis better than D