Multiple choice

Which of the following is not a source of working capital for a manufacturing firm?

  1. Sundry creditor

  2. Unsecured advance

  3. Bank term loan

  4. Bank overdraft

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A term loan is a monetary loan that is repaid in regular payments over a set period of time. It lasts for 10 years approximately or more, therefore it is not working capital source. It is a part of current liability.