While Calculating Terminal Recovery of Working Capital There Are No

question 92

True/False

While calculating terminal recovery of working capital there are no tax consequences as there is no gain or loss on working capital.

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Definitions:

Minimum Cash Balance

The smallest amount of cash that a company decides to hold in its accounts to ensure liquidity and smooth operations.

Cash Loan

A loan given to a borrower in cash, which must be repaid over a specified period along with interest.

Budgeted Depreciation

An estimate of the depreciation expenses for assets during a specific period as planned in a budget.

Selling and Administrative Expenses

Expenses that are not directly related to the production of goods, including costs related to the selling of products and managing the business.