Question

Which one the following is part of working capital?
1.Raw material and Land
2. Raw material and building
3. Raw material and money in hand
4.Money in hand and tools

Answer 1

Part of working capital

Explanation:

Raw material and cash in hand

• Working capital is also called the network working capital.
• This is the differences between the assets, cash account and receivable cash bills of the liabilities such as finished goods, account goods.
• Working capital is the measure of the companies operational efficiency and liquidity.
• A company can have negative working capitals with the ratio of the current current liabilities ratio.
• In positive liabilities it is seen that the positive liabilities means company have working capital in their hands.

Learn More: Liabilities, capital.

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Answer 2

Explanation:

raw materials and money in hand