Working capital is a measure of:
A) solvency.
B) profitability.
C) liquidity.
D) marketability.

Question

Quizplus · Accepted Answer

Working capital is a measure of liquidity, as it reflects a company's ability to meet its short-term obligations and pay its current debts. It is calculated by subtracting current liabilities from current assets. Solvency, profitability, and marketability are other important measures of a company's financial health, but they are not directly related to working capital.

Working Capital Is a Measure Of