Working-Capital Management Current liabilities short-term notes, accrued expenses accounts payable Long-Term Debt and equity bonds, preferred stock, common stock Risk-Return Trade-off Current liabilities are less expensive but increase the risk of illiquidity.Working-Capital Management • Current Liabilities – short-term notes, accrued expenses, accounts payable • Long-Term Debt and Equity – bonds, preferred stock, common stock • Risk-Return Trade-off: Current liabilities are less expensive, but increase the risk of illiquidity