Which of these is used in calculating working capital?

Source: JAMB · 2024

Which of these is used in calculating working capital?

  1. furniture and fittings
  2. machinery
  3. office equipment
  4. stock of raw material ✓
Explanation

Working capital is current assets minus current liabilities. Stock is a current asset.

Furniture, machinery, and equipment are fixed assets. They are not part of working capital.

Working capital shows how much money is available for daily operations.

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