Which of the following items is not classified as working capital?
ECONOMICS
WAEC 2023
Which of the following items is not classified as working capital?
- A. Fuel
- B. Money to pay wages
- C. Semi-finished goods
- D. Equipment
Correct Answer: D. Equipment
Explanation
The answer is equipment. Working capital is the difference between a company's current assets and current liabilities. Current assets are those that can be converted into cash within a year, such as cash, accounts receivable, and inventory. Current liabilities are those that are due within a year, such as accounts payable and accrued expenses.
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