Consider the following groups of items:
(i)Factory buildings
(ii)Plant and Machinery
(iii) Stocks of raw materials
(iv)Wage bills
Which of these are known as working capital?

i and ii

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iii and iv

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i, ii and iii

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ii, iii and iv

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Solution

The correct option is B iii and iv
Working capital refers to those goods which are used to run the day-to-day activities in an organization. Thus stocks of raw materials and wage bills comprise the working capital.

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Consider the following groups of items:(i)Factory buildings(ii)Plant and Machinery (iii) Stocks of raw materials(iv)Wage billsWhich of these are known as working capital?

The correct option is B iii and ivWorking capital refers to those goods which are used to run the day-to-day activities in an organization. Thus stocks of raw materials and wage bills comprise the working capital.

Consider the following groups of items:
(i)Factory buildings
(ii)Plant and Machinery
(iii) Stocks of raw materials
(iv)Wage bills
Which of these are known as working capital?

The correct option is B iii and iv
Working capital refers to those goods which are used to run the day-to-day activities in an organization. Thus stocks of raw materials and wage bills comprise the working capital.