Working capital measures
A)the excess of current assets over current liabilities-what is on hand to fund 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 indicates the amount of resources a business has to fund its day-to-day operations. It is not related to the ability to earn income, the amount of debt, or profitability.

Working Capital Measures