Which item is NOT listed as a current asset in working capital?

• A. Suppliers
• B. Inventory
• C. Customers
• D. Cash

Answer: (A)

The item being tested is what counts as a current asset within working capital. Current assets are resources a business expects to convert into cash within a year, such as cash itself, amounts owed by customers (accounts receivable), and inventory. Suppliers, however, are not assets; they represent amounts the business owes to others and appear as current liabilities on the balance sheet. So the item that is not a current asset is the one referring to amounts payable to suppliers. For example, if you have cash, customers, and inventory but owe suppliers, that payable reduces working capital because it’s a short-term liability, not an asset.