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Q:

Which of the following is classified as working capital?

A) currents assets B) current liabilities
C) Both A & B D) current assets - current liabities

Answer:   D) current assets - current liabities



Explanation:

Working capital, also known as net working capital, is the difference between a company’s current assets, like cash, accounts receivable and inventories of raw materials and finished goods, and its current liabilities, like accounts payable.

 

Working Capital = Current Assets - Current Liabilities

Subject: Indian Economy
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