A firm needs _____ to pay for short-term expenses such as employee salaries, advertising, marketing research, inventory storing costs, and what the firm owes suppliers.
A) debt financing
B) current asset
C) prepaid expense
D) working capital
E) overhead

Question

Quizplus · Accepted Answer

Working capital refers to the money a firm has available to cover its short-term expenses, such as those listed in the question. It is calculated by subtracting current liabilities from current assets. Other answer choices are not directly related to short-term expenses or do not accurately describe the funds needed to cover them.

A Firm Needs _____ to Pay for Short-Term Expenses Such