Which of the following is not considered working capital?
A) Old but salable inventory
B) A 90-day old receivable that should be paid within the next 60 days
C) A bank loan granted to support working capital that isn't due for three years
D) A payable owed to a customer that's bankrupt

Question

Quizplus · Accepted Answer

A bank loan granted to support working capital that isn't due for three years is a long-term liability and not considered part of working capital. Working capital is the short-term assets and liabilities used to finance a company's day-to-day operations. Option A, B, and D all represent short-term assets or liabilities that are typically considered part of working capital.

Which of the Following Is Not Considered Working Capital