Which of the following is NOT considered part of working capital?

Patents are classified as intangible assets rather than part of working capital. Working capital typically includes current assets and current liabilities that are essential for day-to-day operations. Current assets include items such as accounts receivable and inventory, which can be converted to cash within a year, while current liabilities include accounts payable, which represent obligations due in the same time frame.

In contrast, patents are long-term assets that provide competitive advantages and generate revenue over a longer period, rather than being used for immediate operational cash flow. This distinction clarifies why patents do not fit within the conventional definition of working capital. Understanding working capital is crucial, as it reflects a company's liquidity and operational efficiency, aiding in effective financial management and decision-making.