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    Question

    Which of the following is NOT a component of working

    capital?
    A Trade payables Correct Answer Incorrect Answer
    B Short-term loans repayable within 12 months Correct Answer Incorrect Answer
    C Long-term investments held for strategic purposes Correct Answer Incorrect Answer
    D Trade receivables Correct Answer Incorrect Answer

    Solution

    Working capital is defined as Current Assets minus Current Liabilities. Long-term strategic investments are non-current assets and are not part of working capital.

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