Business FinancesQuestion 1130 of 1605
Working capital is calculated as:
a.Total assets minus total liabilities
b.Current assets minus current liabilities
c.Revenue minus expenses
d.Cash minus accounts payable
Explanation
Working capital = current assets - current liabilities. It measures the short-term liquidity available to fund day-to-day operations. (Total assets minus total liabilities is owner's equity, a different figure.)
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