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Question : Which of the following statement is incorrect?
 

Option 1: Networking capital refers to investment in all the current assets taken together.
 

Option 2: Fixed capital is the money invested in fixed assets
 

Option 3: Working capital refers to that part of total capital which is required for holding current assets.
 

Option 4: None of the above


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: Networking capital refers to investment in all the current assets taken together.
 


Solution : Networking capital refers to excess of current assets over current liabilities. Gross working capital refers to investment in all the current assets taken together.

Hence, option A is correct.

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