Asked by
Yanely Gamez
on Dec 01, 2024Verified
Which of the following is not a part of working capital?
A) The short-term credit offered by a supplier.
B) The tax that is due within a year.
C) The cash held in the cash register for making change on a daily basis.
D) The building in which daily operations take place.
Working Capital
The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.
Short-Term Credit
Loans or credit facilities intended to be repaid within a short period, typically less than one year, used for fulfilling immediate financial needs.
Daily Operations
The day-to-day activities necessary for a business to function smoothly, including production, sales, and administrative tasks.
- Examine the elements and importance of working capital within financial activities.
Verified Answer
NG
Learning Objectives
- Examine the elements and importance of working capital within financial activities.