Working capital accounts are funds that are committed to support the day-to-day operations and include the following accounts:
A)Accounts Receivable, Accounts Payable, Accruals, Long-term debt and Inventory
B)Accounts Receivable, Accounts Payable, Accruals
C)Cash, Accounts Receivable, Accounts Payable, Inventory and Long-term Debt
D)Accounts Receivable, Accounts Payable, Accruals, Long-term Debt and Fixed Assets

Question

Working capital accounts are funds that are committed to support the day-to-day operations and include the following accounts: ​
A)Accounts Receivable, Accounts Payable, Accruals, Long-term debt and Inventory ​
B)Accounts Receivable, Accounts Payable, Accruals​
C)Cash, Accounts Receivable, Accounts Payable, Inventory and Long-term Debt ​
D)Accounts Receivable, Accounts Payable, Accruals, Long-term Debt and Fixed Assets ​

Quizplus · Accepted Answer

Working capital accounts specifically refer to accounts that support day-to-day operations, which primarily include managing cash flow, accounts receivable, accounts payable, and accruals. Long-term debt and inventory are not typically considered part of working capital accounts. Fixed assets are also not included as they are not directly related to day-to-day operations. Therefore, the best choice is B.

Working Capital Accounts Are Funds That Are Committed to Support