Accounting for IGCSE & O level - Advanced Principles (Section 2 - No. 44)
What is the primary goal when managing working capital?
To maximize the company's debt.
To minimize the company's expenses.
To ensure the company can meet its short-term obligations.
To increase the company's inventory levels.
Explanation
The main goal of working capital management is to ensure the company can pay its short-term debts.