After demonetisation, which conclusion is most accurate for working-capital management?

Correct answer: Looking only at sales is not enough; collection time, payment priority, and alternative payments must also be examined

The governing concept is that working capital depends on the timing and availability of current assets and current liabilities, especially cash, receivables, and short-term payments. After a sudden payment disruption, reported sales may not immediately become usable cash. Managers must therefore examine how quickly customers pay, whether collections are delayed, which suppliers or obligations have priority, and whether lawful alternative payment channels improve liquidity. Option A is correct because it evaluates the entire cash-conversion process rather than sales alone. Option B is false because payments directly affect liquidity. C is incorrect because liabilities continue to exist, and D is wrong because a cash budget becomes more useful when cash flows are uncertain.