Which of the following items is not classified as working capital?

Step 1: Analyze the question We are asked to find the item that is NOT working capital.

Step 2: Explain the concept

• Working capital (also called circulating capital) is the capital used up or turned over in the day-to-day running of a business. It is used in a single production cycle or changes form quickly. Examples include raw materials, fuel, cash for wages, goods in progress, and stock of goods.
• Fixed capital is capital goods that last a long time and are used repeatedly in production, such as machinery, buildings, equipment, and vehicles.

Step 3: Check each option

• A. Fuel: It is consumed during production, so it is working capital.
• B. Money to pay wages: This is liquid cash used for daily operations, so it is working capital.
• C. Semi-finished goods: These are goods in progress that will be turned into finished goods, so they are working capital.
• D. Equipment: It is durable and used again and again over many years, so it is fixed capital, not working capital.

Step 4: Answer The item that is not working capital is Equipment, which is option D.

Tip: Ask yourself, "Is it used up or turned over quickly?" If yes, it is working capital. If it lasts for years (machines, buildings, equipment), it is fixed capital. Remember: Working = Wasted/Winding through production; Fixed = Stays.