Question

Assertion :Management of working capital refers to the management of current assets and current liabilities. Reason: But the major thrust of course, is on the management of current assets ; because current liabilities arise in the context of current assets.

• A. Both (A) and (R) are incorrect
• B. (A) is correct and (R) is incorrect
• C. Both (A) and (R) are correct
• D. (A) is incorrect, but (R) is correct

Answer 1

The correct option is A Both (A) and (R) are incorrect

Technically it is an integral part of the financial management, and it attempts to manage and control the current assets and the current liabilities in order to maximise the profitability and ensure proper liquidity in the business. Liquidity and Profitability are two important and major aspects of business life.