The circulating capital of a business enterprise is classified into?

A. Cash, work-in-progress and debtors
B. Cash, Vehicles, land and building
C. debtors, stocks of raw materials and fitting
D. Prepayments, debtors, and equipment

Correct Answer:

Option A – Cash, work-in-progress and debtors

Explanation

Circulating capital is the amount of many used for the day-to-day running of the business. It is the capital available to a firm for general-purpose after current liabilities have been deducted. It is the excess of current liabilities over the current liabilities