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Question

___ refers to the investment in all the current assets such as cash, bills receivable, prepaid expenses, inventories, etc. These current assets get converted into cash within a year.


A

Gross working capital

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B

Net working capital

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C

Both A and B

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D

None of these

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Solution

The correct option is A

Gross working capital


Gross working capital refers to the investment in all the current assets such as cash, bills receivable, prepaid expenses, inventories, etc. These current assets get converted into cash within a year.


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