IIA-CIA-Part3 Exam QuestionsBrowse all questions from this exam

IIA-CIA-Part3 Exam - Question 154


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

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Correct Answer: AD

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.

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ElvinOption: A
Feb 6, 2024

Should this be liquidity? Anyone?

KonradK
Mar 5, 2024

Agree with you here

ZoeLeeOption: A
Mar 21, 2024

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