BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Working capital is the difference between a company’s current assets and current liabilities. Working capital can be negative if current liabilities are greater than current assets.
Detailed explanation-2: -Working capital is the amount of current assets that’s left over after subtracting current liabilities. It’s what can quickly be converted to cash to pay short-term debts. Working capital can be a barometer for a company’s short-term liquidity. A positive amount of working capital indicates good short-term health.
Detailed explanation-3: -Answer and Explanation: It is true that working capital is the excess of current assets over current liabilities.
Detailed explanation-4: -Calculation. Working capital is the difference between current assets and current liabilities.