Which of the Following Is a Component of a Firm's

question 78

Multiple Choice

Which of the following is a component of a firm's working capital account?

• A) long-term loans
• B) debentures
• C) inventory
• D) mortgage bonds
• E) convertible bonds

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Definitions:

Freight In

Freight in is the cost associated with transporting goods into a business from suppliers, and is often included in the inventory cost.

Merchandise Inventory

Refers to the products a company has in stock that are available for sale to customers.

Accounts Payable

Liabilities of a company representing amounts owed to creditors for goods and services that were purchased on credit.

Store Equipment

Fixed assets or long-term assets purchased for the operation of a store, such as shelves, register systems, and furniture, which are used in the business over several years.