Q4. Working capital stands for: Tools, machines and buildings Raw materials and money in hand Total share capital Fixed deposits in financial institutions
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Working Capital includes the current assets and not the fixed assets. Therefore, in the given question working capital stands for Raw material and money in hand.
What's included in working capital?
Working capital, also known as net working capital (NWC), is the difference between a company's current assets and current liabilities, such as cash, accounts receivable/unpaid invoices from customers, and raw materials and completed goods inventories.
Elements Included in Working Capital:
Cash and other liquid assets that can be turned into cash within a year after the balance sheet date are included, such as Money in bank accounts and undeposited checks from clients are examples of cash. Treasury bills and money market funds are examples of marketable securities.
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