working capital, defined as current assets minus the sum of payables and accruals, is equal to the current ratio minus the quick ratio.

Name: working capital, defined as current assets minus the sum of payables and accruals, is equal to the current ratio minus the quick ratio.
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Question

Quizplus · Accepted Answer

Working capital is equal to current assets minus current liabilities (not just payables and accruals). The formula for working capital is not related to the current ratio or quick ratio.

Working Capital, Defined as Current Assets Minus the Sum of Payables