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:

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Earnings per Share

A financial indicator showing the portion of a company's profit allocated to each outstanding share of common stock.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.