Investment in Operating Capital Is

question 34

Multiple Choice

Investment in operating capital is:

• A)the change in assets plus the change in current liabilities.
• B)the change in gross fixed assets plus depreciation.
• C)the change in gross fixed assets plus the change in free cash flow.
• D)None of the above.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of a business.

Long-Term Liabilities

All of the entity’s obligations that are not classified as current liabilities.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.