Working Capital Includes All of the Following EXCEPT

question 6

Multiple Choice

Working capital includes all of the following EXCEPT

• A) cash.
• B) accounts receivable.
• C) accounts payable.
• D) inventories.

---

Definitions:

Capital Stock

The total amount of a company's share equity including both common and preferred shares, representing the initial investment in the business.

Free Cash Flow

A measure that assesses a company’s ability to fund its capital expenditures and dividends from its net cash provided by operating activities.

Indirect Method

A technique used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Property Plant Equipment

Long-term tangible assets held for business use and not expected to be converted into cash in the current or upcoming fiscal year, including land, buildings, machinery, and vehicles.