Question

    What does the Core Current Asset (CCA) concept,

    introduced by the Tandon Committee , refer to?
    A The amount of inventory needed to ensure uninterrupted production Correct Answer Incorrect Answer
    B The amount of cash available in the business at all times Correct Answer Incorrect Answer
    C The sum of receivables expected in one operating cycle Correct Answer Incorrect Answer
    D The total long-term assets that can be easily liquidated Correct Answer Incorrect Answer
    E The cash flow generated from sales during a given period Correct Answer Incorrect Answer

    Solution

    The Core Current Asset (CCA) refers to the minimum level of current assets, like inventory, that an enterprise must maintain to ensure uninterrupted production. This concept helps determine the baseline level of working capital that is always required by the business.

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