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Commerce · Q181

Financial Management

Graduate and Post Graduate · Commerce · question 181

Q181

The amount of current assets that varies with seasonal requirements is referred to as __________ working capital.

A.
Permanent
B.
Net
C.
Temporary
Answer
D.
Gross

Answer: Option C

Solution

Answer: Option C
Solution:
The amount of current assets that varies with seasonal requirements is referred to as Temporary working capital. Temporary working capital (TWC) is the temporary fluctuation of networking capital over and above the permanent working capital.