Asked by Alexa Warson on May 07, 2024
Verified
Which of the following is not part of working capital?
A) Accumulated depreciation
B) Accounts Payable
C) Accounts Receivable
D) Inventory
Working Capital
The variance between a firm's immediate assets and its short-term obligations.
Accumulated Depreciation
The total depreciation of an asset over its life up to a specific point in time, reflecting how much of its value has been used up.
Accounts Payable
Accounts payable represent a company's obligation to pay off a short-term debt to its creditors or suppliers.
- Acquire knowledge on the influence of dividends on taxable income and comprehend the basic elements of working capital.
Verified Answer
DB
dagnachew bizunehMay 12, 2024
Final Answer :
A
Explanation :
Accumulated depreciation represents a decrease in the value of a company's assets over time and is not considered part of working capital, which focuses on a company's short-term liquidity. Working capital is calculated as current assets (such as accounts receivable and inventory) minus current liabilities (such as accounts payable).
Learning Objectives
- Acquire knowledge on the influence of dividends on taxable income and comprehend the basic elements of working capital.
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