Working capital is

Question

Working capital is

Quizplus · Accepted Answer

Working capital is calculated as current assets minus current liabilities. This represents the amount of funds the company has available to cover day-to-day expenses and operations. Option A (capital reinvested) and option B (cash invested by owners) do not accurately describe working capital, as they refer to a broader concept of overall business capitalization and ownership. Option C (cash and receivables less current liabilities) is close, but does not take into account other current assets such as inventory.

Working Capital Is