Multiple choice

Which of the following is not an application of working capital?

  1. Day-to-day expenditure of business

  2. Current obligations for payment

  3. Expenditure in the usual course of business

  4. Expenditure to acquire capital
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Working capital applications involve short-term operational uses such as day-to-day expenditures and current obligations, whereas expenditure to acquire capital assets relates to capital budgeting and fixed capital.

Keep practicing — related questions