Question

3. Working capital is also known as :
(A) Revolving capital
(B) Circulating capital
(C) Short term capital
(D) All of these​

Answer 1

Answer:

The  correct answer of this question is  Circulating capital .

Explanation:

Given -  Working capital  .

Working capital, also known as net working capital .

Money used for a company's basic operations is known as circulating capital. Cash, operational expenses, raw materials, inventory in progress, finished goods inventory, and accounts receivable are all examples of circulating capital. Working capital or revolving capital are two terms used to describe circulating capital.

Answer 2

Answer:

(D) All of these​

Explanation:

Working capital is also called as all of the above mentioned options  because of the following reasons-

• As the money keeps circulating in different forms of current assets in a regular and continuous manner
• Example- Fund which are once invested in raw materials later gives returns when converted into finished goods.
• Also, it is the capital which used to carry out day to day activities of an enterprise doesn't matter if it is big or small.
• That's why it is also called as short term capital.

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