ch 16 working capital management

What can lead to a change in the optimal working capital policy

a change in technology

An aggressive approach to current asset financing calls can be described as

financing some of its permanent assets partially with short term debt

Maturity matching or the self-liquidating approach describes a current asset financing policy that

calls for matching assets and liability maturities

A restricted policy indicates a ___ level of assets, which results in a ___ return on equity

low, high

Which of the following is NOT a part of the cash conversion cycle calculation

receivable deferral period

Which of the following statements best describes working capital

current assets are often called working capital

Other things held constant, which of the following will cause an increase in net working capital

Merchandise is sold at a profit, but the sale is on credit