Current Liabilities management can be an excellent source of financing for the firm. Name and explain at least 3 methods of current liabilities management. Which of these methods do you prefer? Why? Does the type of industry make a difference as to which method is preferable? Explain please.© BrainMass Inc. brainmass.com June 3, 2020, 9:19 pm ad1c9bdddf
The 3 methods of current liabilities management are:
a. Account Payable management
b. Payment of wages & Wages management
c. Payment of tax and other obligations management
a.Account Payables are the payments that the company should make for the purchases made or for services utilised etc. For ex. If the company manages to negotiate with the purchaser to give a credit period of 1 month, then the company gets a working capital cycle of 1 month. It means, the company has upto 1 month to sell its ...