SSC MTS 2019 PYQ — Question 36

SSC MTS Previous Year - 08 August 2019 - Shift 2 • General Awareness • Q36

Which of the following is working capital?

Show answer & explanation

Correct answer: B

Explanation

The correct answer is option 2 i.e. Money.

  • Working capital is a financial metric that represents operating liquidity available to an entity.
  • The capital of a business which is used in its day-to-day trading operations is calculated as the current assets minus the current liabilities.
  • Working capital is the money used to cover all of a company's short-term expenses, which are due within one year.
  • Fixed capital is any kind of real, physical asset that is used repeatedly in the production of a product. For example Buildings, plants, machinery, vehicles, equipment, etc.