Working Capital =
A) Current Assets - Long-Term Liabilities
B) Current Assets - Current Liabilities
C) Long Term Assets - Long Term Liabilities
D) Total Assets - Total Liabilities

Question

Quizplus · Accepted Answer

Working Capital is defined as the difference between Current Assets and Current Liabilities. Current assets are resources that are expected to be converted into cash within a year whereas current liabilities are obligations that are due within a year. The formula for calculating working capital is thus: Working Capital = Current Assets - Current Liabilities.