In the Production of Clothing, Which Step Is Considered More

question 12

Multiple Choice

In the production of clothing, which step is considered more capital intensive than the others?

• A) spinning of thread
• B) weaving of fabric
• C) final assembly of clothing
• D) selling of clothing

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or the operating cycle, whichever is longer.

Current Liabilities

Financial obligations or debts that a company is expected to pay within one year or within its normal operating cycle, whichever is longer, including accounts payable, short-term loans, and accrued expenses.

Operating Activities

Business activities related directly to the production, sale, and delivery of a company's products and services, generating the primary revenue streams.

Income Statement

A financial statement that reports a company's financial performance over a specific period, detailing revenues, expenses, and profits or losses.