alleryStart learning →Gross working capital is equivalent to which balance sheet total?
ACurrent assets
BCurrent auditors
CConstant assets
DContract assets
Answer & Solution
Correct answer: A. Current assets
1. Working capital is described in two versions.
2. The gross version is the simpler of the two.
3. Current assets are synonymous with the term gross working capital.
4. So the answer is current assets.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 19 'The Importance of Trade Credit and Working Capital in Planning', sections 19.1-19.5_
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