An Example of an Item Which Is NOT an Element

question 73

Multiple Choice

An example of an item which is NOT an element of working capital is

• A) accrued interest on notes receivable.
• B) goodwill.
• C) inventory.
• D) short-term investments.

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Definitions:

Inflation Rate

A rise in the cost percentage of goods and services in an economy during a certain period.

Depreciate

The gradual reduction in the economic value of tangible fixed assets due to wear and tear over time.

Euro

The Euro is the official currency of the Eurozone, used by 19 of the 27 European Union countries.

Real Exchange Rate

The rate at which two currencies can be exchanged after adjusting for their differing levels of inflation.