Which of the following items is not classified as working...
Which of the following items is not classified as working capital?
Fuel
Money to pay wages
Semi-finished goods
Equipment
Correct answer is D
The answer is equipment. Working capital is the difference between a company's current assets and current liabilities. Current assets are those that can be converted into cash within a year, such as cash, accounts receivable, and inventory. Current liabilities are those that are due within a year, such as accounts payable and accrued expenses.
Equipment is a long-term asset, meaning that it is not expected to be converted into cash within a year. Therefore, it is not classified as working capital.
The other options, fuel, money to pay wages, and semi-finished goods, are all current assets and are therefore classified as working capital.
To summarize, the item that is not classified as working capital is equipment.
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