Which of the Following Expenses Involves the Working Capital a Company

question 19

Multiple Choice

Which of the following expenses involves the working capital a company needs for operation?

• A) The money required to purchase land in order to set up a plant
• B) The money required to purchase equipment necessary to begin operations
• C) The money required to pay the salary of employees
• D) The money required to acquire a competing firm
• E) The money required to set up the power grid for a new manufacturing plant

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Definitions:

Balance Per Bank

It represents the amount of money in a company’s bank account, according to the bank's records.

Prenumbered Cheques

Checks that are printed in advance with sequential numbers to help maintain an audit trail and manage financial transactions securely.

Bank Reconciliation

The method of aligning the amounts in a company's bookkeeping records for a cash account with the matching data on a bank statement.