Question

    The term Gross Working Capital is known

    as:
    A The investment in current liabilities Correct Answer Incorrect Answer
    B The investment in long-term liability Correct Answer Incorrect Answer
    C The investment in current assets Correct Answer Incorrect Answer
    D The investment in Net current assets Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The term "Gross Working Capital" refers to the total amount of investment made in current assets by a company. Current assets are those assets that are expected to be converted into cash within one year or the operating cycle of the business, whichever is longer. Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses.

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