Money in hand is an example of:a)Fixed capital b)Working capitalc)Physical capital d)None of theseCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

Working Capital

Working capital refers to the capital that is used to carry out day-to-day operations of a business. It includes the funds that are required to purchase raw materials, pay for wages and salaries, rent, utilities, and other expenses that are required to keep the business running smoothly.

Money in hand is an example of working capital because it is the cash that is readily available to a business to pay for its immediate expenses. It is also known as cash on hand or cash in hand.

Other examples of working capital include:

- Inventory: The stock of goods that a business keeps on hand to sell to customers.
- Accounts receivable: The money that a business is owed by its customers for goods or services that have been provided but not yet paid for.
- Accounts payable: The money that a business owes to its suppliers for goods or services that have been received but not yet paid for.

Working capital is an important aspect of business operations because it ensures that a business has enough funds to meet its short-term obligations. Without sufficient working capital, a business may struggle to pay its bills and could be forced to close its doors.

Answer

Money in hand is an example of working capital. Working capital is calculated as the difference between the current assets and current liabilities. In this context, cash in hand is a convenient method of investment in terms of working capital as it earns a fair return.

Answer

Working capital is the amount of money that a business requires to carry out its daily operations. It includes money in hand or cash, inventory, accounts receivable, and short-term investments. Working capital is essential for a business to run smoothly, and it is often referred to as the lifeblood of a company.

Explanation:
• Money in hand is the cash that a business has available to pay for its daily expenses, such as rent, utilities, and wages.
• Working capital is the amount of money that a business has to fund its day-to-day operations. It is calculated by subtracting current liabilities from current assets.
• Fixed capital refers to assets that are used to generate income over a long period, such as machinery, buildings, and land.
• Physical capital refers to all tangible assets that a business owns, such as equipment, property, and inventory.

Therefore, money in hand is an example of working capital, which is essential for a business to meet its short-term financial obligations.

Answer

Working capital

Answer

Option b) working capital

Answer

Working capital gets used up during production. Since money is used up to buy various items like seeds, fertilizers, etc., it is working capital.

Answer

Money in hand is surely an example of working capital but..
working capital comes under physical capital..right..?

so the answer should be physical capital

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