Working capital includes which of the following?

• A. Inventory
• B. Debtors
• C. Cash
• D. All of the above

Answer: (D)

Working capital reflects the funds a business has available for its day‑to‑day operations, basically its short‑term liquidity. It is tied up in current assets that can be converted to cash within a year, and those include cash itself, inventory, and trade debtors (receivables). Since each of these is a current asset used to run the business and meet short‑term obligations, all of them are part of working capital. That’s why the best choice is all of the above.