Question

An example of an item which is not an element of working capital is

a. accused interest on notes receivable
b. goodwill
c. goods in process
d. temporary investments

Answer 1

Goodwill is an example of an item that is not an element of working capital.

Step-by-step explanation:

An example of an item which is not an element of working capital is goodwill.

Working capital refers to the current assets and liabilities of a business that are used in its day-to-day operations. Examples of working capital elements include cash, accounts receivable, and inventory. Goodwill, on the other hand, represents the value of a business above its tangible assets and is not directly involved in the operational activities of the business.