Question

Which of the following accounts would not be a prime consideration in​ working-capital management?  ​(Select the...

Which of the following accounts would not be a prime consideration in​ working-capital management?  ​(Select the best choice​ below.) A. Bonds payable B. Cash C. Marketable securities D. Accounts receivable E. Accounts payable

Homework Answers

Answer #1

Answer is option (A). Bonds payable

Explanation;

As we know that working capital management is based on current assets and current liabilities.

Cash, Marketable securities and Accounts receivable, are the part of current assets while Accounts payable is the part of current liabilities hence these items would be a prime consideration in​ working-capital management.

But bonds payable is a non-current liabilities that is why this would not be a prime consideration in​ working-capital management.

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