Working capital measures
A) the excess of current assets over current liabilities-what is on hand to continue business operations.
B) the ability to earn a satisfactory income.
C) the amount of debt in the company.
D) the profitability of the business.

Question

Quizplus · Accepted Answer

Working capital measures the excess of current assets over current liabilities, which represents the amount of resources a company has on hand to continue business operations. It does not measure the ability to earn income, amount of debt, or profitability.

Working Capital Measures