Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789

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
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
Join your school's WhatsApp group
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Correct Answer: Option D
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.

Equipment is a long-term asset, meaning that it is not expected to be converted into cash within a year. Therefore, it is not classified as working capital.

The other options, fuel, money to pay wages, and semi-finished goods, are all current assets and are therefore classified as working capital.

To summarize, the item that is not classified as working capital is equipment.


Report an Error Ask A Question Download App
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Join your school's WhatsApp group

Contributions ({{ comment_count }})

Please wait...

{{ settings.no_comment_msg ? settings.no_comment_msg : 'There are no comments' }}

Quick Questions

Post your Contribution

Please don't post or ask to join a "Group" or "Whatsapp Group" as a comment. It will be deleted. To join or start a group, please click here

{{ quote.posted_by.display_name }}
{{ settings.form_textarea_description }}
 
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Join your school's WhatsApp group
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Join your school's WhatsApp group
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709