A) Regardless of the type of business, we should continually try to manage working capital so that there is an excess of:

1.current assets over future liabilities

2.current cash reserves less liabilities over

3.current assets current assets over current liabilities

4.current assets over future projected liabilities

B) A $60,000 outlay for a new machine with a usable life of 15 years is called

1.Capital expenditure 2. Operating expenditure 3. Replacement expenditure 4. None of the above