Working Capital Quiz

 How is WORKING CAPITAL Calculated?A) Total Assets Less Total LiabilitiesB) Current Assets Less Current LiabilitiesC)…

Working Capital Quiz

How is WORKING CAPITAL Calculated?
A) Total Assets Less Total Liabilities
B) Current Assets Less Current Liabilities
C) Fixed Assets Less Current Liabilities
D) Total Assets Less Current Liabilities

Answer:

Working Capital = Current Assets – Current Liabilities

It is a financial metric that ascertains a company’s operating liquidity, it is calculated by subtracting total current liabilities from total current assets. WC=CA-CL.

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