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  • Question
  • Which of the following is classified as working capital?


  • Options
  • A. currents assets
  • B. current liabilities
  • C. Both A & B
  • D. current assets - current liabities

  • Correct Answer
  • current assets - current liabities 

    Explanation

    Working capital, also known as net working capital, is the difference between a company?s current assets, like cash, accounts receivable and inventories of raw materials and finished goods, and its current liabilities, like accounts payable.

     

    Working Capital = Current Assets - Current Liabilities

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    Indian Economy problems


    Search Results


    • 1. Trade blocs help countries by

    • Options
    • A. competition
    • B. economic integration
    • C. Increase in trade
    • D. All of the above
    • Discuss
    • 2. Increasing marginal cost of production explains

    • Options
    • A. the income effect.
    • B. why the supply curve is upsloping.
    • C. why the demand curve is downsloping
    • D. the law of demand.
    • Discuss
    • 3. The real wage will rise if the nominal wage

    • Options
    • A. increases more rapidly than the general price level.
    • B. increases at the same rate as labor productivity.
    • C. falls more rapidly than the general price level.
    • D. falls at the same rate as the general price level.
    • Discuss
    • 4. Bilateral monopoly occurs where
    • Discuss
    • 5. Supply curves tend to be

    • Options
    • A. more elastic in the long run, because there is time for firms to enter or leave the industry.
    • B. less elastic in the long run, because there is time for firms to enter or leave an industry.
    • C. perfectly elastic in the long run, because consumer demand will have sufficient time to adjust fully to changes in supply. B.
    • D. None of the above
    • Discuss
    • 6. Poverty level in india is estimated on the basis of

    • Options
    • A. Household consumer expenditure
    • B. Slum population in the country
    • C. Per capita income in different States
    • D. Household average income
    • Discuss
    • 7. The demand curve shows the relationship between

    • Options
    • A. good price and the service
    • B. quantity demanded and the price of the good
    • C. quality and quantity of the good
    • D. quality and price of the good
    • Discuss
    • 8. Through specialization and international trade, a nation

    • Options
    • A. will attain some combination of goods lying inside its production possibilities curve
    • B. will shift its production possibilities curve towards left
    • C. can attain some combination of goods lying outside its production possibilities curve
    • D. will shift its production possibilities curve towards right
    • Discuss
    • 9. If intermediate goods and services were included in GDP

    • Options
    • A. the price level may change over time.
    • B. the GDP would be overstated.
    • C. the price level rose by more than nominal GDP.
    • D. All of the above
    • Discuss
    • 10. The concept of net domestic investment refers to

    • Options
    • A. the difference between the market value and book value of outstanding capital stock.
    • B. total investment less the amount of investment goods used up in producing the year's output.
    • C. the amount of machinery and equipment used up in producing the GDP in a specific year.
    • D. gross domestic investment less net exports.
    • Discuss


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