Working capital is
A)Current assets divided by current liabilities.
B)Current assets minus current liabilities.
C)Cash,short-term investments,and accounts receivable divided by current liabilities.
D)Cash,short-term investments,and accounts receivable minus current liabilities.

Question

Quizplus · Accepted Answer

Working capital is the difference between current assets and current liabilities, which indicates a company's ability to meet short-term financial obligations. Option A calculates the current ratio, option C calculates the quick ratio, and option D calculates the net working capital.

Working Capital Is