Asked by Ailsa Hansen on Apr 25, 2024
Verified
Which of the following assets (if any) are not part of a firm's working capital investment?
A) Cash
B) Accounts receivable
C) Inventory
D) None of the above
Working Capital Investment
Funds invested in a company's short-term assets, like inventory and accounts receivable, which are necessary for its day-to-day operations.
Accounts Receivable
Amounts owed to a business by customers for goods or services that have been delivered but not yet paid for.
Inventory
The total amount of goods and materials held in stock by a business, part of the company's current assets.
- Determine and describe the components constituting net working capital.
Verified Answer
GA
Gagandeep Anttal6 days ago
Final Answer :
D
Explanation :
All three assets, cash, accounts receivable, and inventory, are considered part of a firm's working capital investment. Therefore, none of the above is the correct answer.
Learning Objectives
- Determine and describe the components constituting net working capital.