Which one of the following refers to the firm’s investment in the current assets?

Correct option is A

Gross Working Capital refers to the total investment made by a firm in its current assets, such as cash, receivables, and inventory, to support its short-term operations.
· Net Working Capital refers to the difference between current assets and current liabilities.
· Gross Current Liabilities are the total short-term liabilities a company owes.
· Operating Cycle is the time it takes for a firm to purchase inventory, sell it, and collect cash.
Information Booster
1. Gross Working Capital is the sum of all current assets that a business holds.
2. Net Working Capital is a liquidity measure that helps determine a company's ability to cover its short-term obligations.
3. Current liabilities are obligations due within one year or the company's operating cycle.