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Which among the following are considered for calculating working capital out of below mentioned balance sheet items?

A. Stock

B. Marketable Securities

C. Prepaid Expenses

D. Debentures

Choose the correct answer from the options given below:

Solution

Correct Option: 3

Working capital = current assets - current liabilities. Stock, marketable securities and prepaid expenses are all current assets and enter the computation. Debentures are long-term borrowed funds, not a current item. Hence A, B and C only.

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