Working capital accounts are funds that are committed to support the day-to-day operations and include the following accounts:

A) Accounts Receivable, Accounts Payable, Accruals, Long-term debt and Inventory
B) Accounts Receivable, Accounts Payable, Accruals
C) Cash, Accounts Receivable, Accounts Payable, Inventory and Long-term Debt
D) Accounts Receivable, Accounts Payable, Accruals, Long-term Debt and Fixed Assets

Question

Abdullah Al Rikabi · Accepted Answer

Final Answer : B, Explanation :  Working capital accounts specifically refer to accounts that support day-to-day operations, which primarily include managing cash flow, accounts receivable, accounts payable, and accruals. Long-term debt and inventory are not typically considered part of working capital accounts. Fixed assets are also not included as they are not directly related to day-to-day operations. Therefore, the best choice is B.

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