{"id":33711,"date":"2024-04-15T09:20:37","date_gmt":"2024-04-15T09:20:37","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=33711"},"modified":"2024-04-15T09:20:37","modified_gmt":"2024-04-15T09:20:37","slug":"read-the-following-statements-1-working-capital-is-the-amount-of-funds-necessary-to-cover-the-cost-of-operating-the-enterprise-2-circulating-capital-means-current-assets-of-a-company-that-are-chan","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-1-working-capital-is-the-amount-of-funds-necessary-to-cover-the-cost-of-operating-the-enterprise-2-circulating-capital-means-current-assets-of-a-company-that-are-chan\/","title":{"rendered":"Read the following statements: 1. Working capital is the amount of funds necessary to cover the cost of operating the enterprise. 2. Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another."},"content":{"rendered":"<p>[amp_mcq option1=&#8221;1 and 2 both are correct&#8221; option2=&#8221;1 and 2 both are incorrect&#8221; option3=&#8221;1 is correct, but 2 is incorrect&#8221; option4=&#8221;1 is incorrect, but 2 is correct&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>C. 1 is correct, but 2 is incorrect.<\/strong><\/p>\n<p>Working capital is the amount of funds necessary to cover the cost of operating the enterprise. It is calculated as current assets minus current liabilities. Current assets are assets that are expected to be converted into cash within one year, such as cash, accounts receivable, and inventory. Current liabilities are liabilities that are due within one year, such as accounts payable and short-term debt.<\/p>\n<p>Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another. This is a broader definition of working capital that includes all current assets, not just those that are necessary to cover the cost of operating the enterprise.<\/p>\n<p>Therefore, statement 1 is correct, but statement 2 is incorrect.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;1 and 2 both are correct&#8221; option2=&#8221;1 and 2 both are incorrect&#8221; option3=&#8221;1 is correct, but 2 is incorrect&#8221; option4=&#8221;1 is incorrect, but 2 is correct&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[700],"tags":[],"class_list":["post-33711","post","type-post","status-publish","format-standard","hentry","category-business-finance","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Read the following statements: 1. Working capital is the amount of funds necessary to cover the cost of operating the enterprise. 2. Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-1-working-capital-is-the-amount-of-funds-necessary-to-cover-the-cost-of-operating-the-enterprise-2-circulating-capital-means-current-assets-of-a-company-that-are-chan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Read the following statements: 1. Working capital is the amount of funds necessary to cover the cost of operating the enterprise. 2. 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Working capital is the amount of funds necessary to cover the cost of operating the enterprise. 2. Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-1-working-capital-is-the-amount-of-funds-necessary-to-cover-the-cost-of-operating-the-enterprise-2-circulating-capital-means-current-assets-of-a-company-that-are-chan\/","og_locale":"en_US","og_type":"article","og_title":"Read the following statements: 1. Working capital is the amount of funds necessary to cover the cost of operating the enterprise. 2. Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another.","og_description":"[amp_mcq option1=&#8221;1 and 2 both are correct&#8221; option2=&#8221;1 and 2 both are incorrect&#8221; option3=&#8221;1 is correct, but 2 is incorrect&#8221; option4=&#8221;1 is incorrect, but 2 is correct&#8221; correct=&#8221;option3&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-1-working-capital-is-the-amount-of-funds-necessary-to-cover-the-cost-of-operating-the-enterprise-2-circulating-capital-means-current-assets-of-a-company-that-are-chan\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T09:20:37+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-1-working-capital-is-the-amount-of-funds-necessary-to-cover-the-cost-of-operating-the-enterprise-2-circulating-capital-means-current-assets-of-a-company-that-are-chan\/","url":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-1-working-capital-is-the-amount-of-funds-necessary-to-cover-the-cost-of-operating-the-enterprise-2-circulating-capital-means-current-assets-of-a-company-that-are-chan\/","name":"Read the following statements: 1. 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