Question

Working capital stands for :

• A. Tools, machines and buildings
• B. total share capital
• C. fixed deposits in financial institutions
• D. raw materials and money in hand

Answer 1

The correct option is C fixed deposits in financial institutions

Working capital indicates the liquidity levels of businesses for managing day-to-day expenses and covers inventory, cash, accounts payable, accounts receivable and short-term debt. It is an indicator of the short-term financial position of an organisation and is also a measure of its overall efficiency.