Question

Question 1
Which of the following is an item of working capital?
a. Fixed assets
b. Long-term investments
c. Accounts receivable
d. Bonds payable​

Answer 1

Answer:

c) Accounts receivable

Answer 2

c. Accounts receivable is an item of working capital.

• Working capital is the term used in accounting.
• The term refers to difference between current assets and current liabilities.
• It does not include fixed assets, long term investments and bonds payable.
• Current assets include cash, amount receivable and inventories comprising of raw materials and products etc.
• Current liabilities include amount payable and short term borrowings etc.