BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The Correct Answer is Current assets. Gross working capital is the sum of a company’s Current assets (assets that are convertible to cash within a year or less). Gross working capital includes assets such as cash, accounts receivable, inventory, short-term investments, and marketable securities.

Detailed explanation-2: -Gross working capital means the accumulation of the total current asset of an organisation. It includes assets that can be liquidated quickly. For instance, liquid cash, inventory, account receivables, marketable securities and short-term investments are a few examples of gross working capital.

Detailed explanation-3: -Working capital = current assets – current liabilities. Net working capital = current assets (minus cash)-current liabilities (minus debt). Operating working capital = current assets – non-operating current assets. Non-cash working capital = (current assets – cash) – current liabilities.

Detailed explanation-4: -The statement is true. Working capital is generally defined as the difference between current assets and current liabilities.

Detailed explanation-5: -Gross working capital refers to the firm’s investment in current assets. Net working capital refers to the difference between current assets and current liabilities. A positive working capital indicates the company’s ability to pay its short-term liabilities.