alleryStart learning →Trade working capital differs from working capital because it excludes what?
AInventory items
BDebtor balances
CCash balances
DCreditor balances
Answer & Solution
Correct answer: C. Cash balances
Trade working capital covers only trade items such as stock, debtors and creditors, so cash is left out.
Keep practising Working Capital
Browse all Working Capital questions for CA Inter, or explore more Financial Management topics.
Related questions
Single stage inventory calculations look at which scope?Setting a number of days of supply as a coverage target is an example ofWhy should companies keep inventory low when working capital is scarce?Multi-echelon inventory optimization sets stock levelsWhich inventory optimization models use probability distributions for variables?The bullwhip effect in supply chains refers to what?Critics fault the EOQ model mainly for which weakness?Under an all-units discount, price is Rs 50 up to 1,000 units and Rs 45 for 1,001 to 5,000