[amp_mcq option1=”Gross working capital” option2=”Invested capital” option3=”Assets” option4=”Cash” correct=”option1″]
The correct answer is A. Gross working capital.
Current assets are assets that are expected to be converted into cash within one year. They include cash, accounts receivable, inventory, and short-term investments. Gross working capital is the difference between current assets and current liabilities. It is a measure of a company’s liquidity, or its ability to meet its short-term obligations.
B. Invested capital is the total amount of money that a company has invested in its assets. It includes both debt and equity financing.
C. Assets are resources that a company owns and expects to benefit from in the future. They can be tangible, such as land and equipment, or intangible, such as patents and trademarks.
D. Cash is money that is on hand or that is easily accessible. It is the most liquid asset that a company can have.