Which One of the Following Is Included in Net Working

question 27

Multiple Choice

Which one of the following is included in net working capital?

• A)Land
• B)Accounts payable
• C)Equipment
• D)Depreciation
• E)Dividend

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Definitions:

Machine-Hours

A measure of production time or capacity based on the number of hours machines are in operation.

Unused Capacity

The available production or service capability that is not being utilized by a business.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual jobs or products based on a certain activity base, such as machine hours or labor hours.

Automated Lathe

A machine used in the manufacturing process that is controlled by a computer, improving precision and efficiency in producing parts.