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1 FINANCE MCQS

Accounts receivable and inventory are examples of ____________?

  • Short-term working capital
  • Long-term working capital
  • Long-term fixed assets
  • Short-term fixed assets
Correct Answer: A. Short-term working capital

Detailed Explanation

Accounts receivable and inventory are considered short-term working capital because they are current assets that are expected to be converted into cash or used up within one year. They are essential for managing day-to-day operations and liquidity of a business.

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