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Home Questions TDGGCCYHN2
Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

Gross working capital represents the total investment in which of the following assets?

Options:

Fixed Assets

Current Assets

Tangible Assets

Intangible Assets

Correct Answer:

Current Assets

Explanation:

The answer is: Option 2: Current Assets

Gross working capital refers to the total value of a company's current assets. These are assets that can be converted into cash within a year or less. Examples of current assets include:

  • Cash and cash equivalents
  • Accounts receivable (money owed by customers)
  • Inventory (goods for sale)
  • Short-term investments

Fixed assets, tangible assets, and intangible assets are not included in gross working capital.

  • Fixed assets are long-term investments that are not easily converted to cash, like buildings, machinery, and equipment.
  • Tangible assets are physical assets that can be seen and touched, including both current and fixed assets.
  • Intangible assets are non-physical assets like intellectual property, brand recognition, and goodwill.

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