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

Question

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 · Accepted Answer

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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Related Questions

Question : It refers to that part of total capital which is required for holding current assets. Which concept is highlighted in the given statement?

Question : It is the money invested in fixed assets which is to be used over a long period of time. Which capital is highlighted in the given statement?

Question : ----------------- is a fund earmarked for investment in fixed assets or already invested in fixed assets. An example of a Fixed Assets Fund is a Building Fund & Amount invested in fixed assets during the year is transferred to a Capital Fund.

Question : ----------------- is a fund earmarked for investment in fixed assets or already invested in fixed assets. An example of a Fixed Assets Fund is a Building Fund & Amount invested in fixed assets during the year is transferred to a Capital Fund.

Question : Which of the following tells the working capital?

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