An example of an item which is not an element of working capital is
A)accrued interest on notes receivable.
B)goodwill.
C)goods in process.
D)short-term investments.

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset and is not considered a part of working capital. Choices A, C, and D are all considered part of working capital as they represent current assets or liabilities that are used in the day-to-day operations of a business.

An Example of an Item Which Is Not an Element