Question

Among the following which one is not an example for working capital?

A) Primary sector
B) Secondary Sector
C) Tertiary Sector
D) None of them.

Answer 1

Answer:

tertiary sector is the not the example of working capital

Answer 2

None of them mentioned sector is not an example for working capital.

Option D

Explanation:

• The money which is available to a company for day to day operation is working capital.
• It measures efficiency liquidity and complete health of company.
• A working capital formula can be calculated with following formula working Capital= current assets - current liabilities.
• In some cases, the ratio of present assets to liabilities is lesser than one than the working capital of the company became negative.
• The change in company’s working capital affects in cash flow of any company.

To learn more about working capital:

What is working capital how is it an important factor of production

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