An Example of an Item Which Is NOT an Element

question 73

Multiple Choice

An example of an item which is NOT an element of working capital is

• A) accrued interest on notes receivable.
• B) goodwill.
• C) inventory.
• D) short-term investments.

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Definitions:

Investment

The allocation of resources, such as capital, time, or effort, in hope of generating a gain or profit in the future.

Fat Tails

Refers to the occurrences of extreme movements in stock prices or higher than normal risks in investments, which lead to heavy tails in a probability distribution.

Kurtosis

Measure of the fatness of the tails of a probability distribution. Indicates probability of observing extreme high or low values.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable about its mean.