Working capital accounts include

Question

Quizplus · Accepted Answer

Working capital accounts are focused on the liquidity of a company and measure the availability of cash to fund day-to-day operations. Therefore, it only includes current assets (such as cash, accounts receivable, inventory) and current liabilities (such as accounts payable, short-term loans, and taxes payable) that are expected to be settled within one year. Option A and B are incorrect because they include all assets, including long-term assets such as property and equipment, which are not considered part of working capital. Option C is incorrect because it includes all liabilities, including long-term liabilities that are not due within a year.

Working Capital Accounts Include