Question

Which of the following is a working capital?

• A. cash
• B. tool
• C. furniture
• D. machines

Answer 1

The correct option is A

cash

a) Cash is working capital

Explanation

Cash is an asset that can be accessed very easily and quickly. Since money is regarded as a legal tender, any company can use cash to pay for its existing liabilities. Any cash in hand or account is considered to be liquid because it can be taken out quickly without any formalities.