The purpose of managing current assets and current liabilities is to
A. achieve as low a level of current assets as possible.
B. achieve as low a level of current liabilities as possible.
C. achieve a balance between profitability and risk that contributes to the firm’s value.
D. achieve as high a level of current liabilities as possible.
Answer:C
The purpose of managing current assets and current liabilities is to
A. achieve as low a level of current assets as possible. B. achieve as low a level of current liabilities as possible. C. achieve a balance between profitability and risk that contributes to the firm’s value. D. achieve as high a level of current liabilities as possible.