Which of the following is working capital in the farming sector?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. money.
| Money | Working capital is a simple measure of the overall amount of liquidity (money) available in the farm sector. |
| It is calculated by subtracting current liabilities from current assets. The larger the number the more liquidity that is available in the sector. | |
| Cash and cash equivalents—including cash, such as funds in checking or savings accounts, while cash equivalents are highly-liquid assets, such as money-market funds and Treasury bills. |