Question : Which of the following is correct for working capital :
A) Difference between Current Assets and Current Liabilities.
B) Difference between Current Assets and Fixed Assets.
Option 1: Only A
Option 2: Only B
Option 3: Both of the above
Option 4: None of the above
Answer (1)
24th Jan, 2024
Correct Answer: Only A
Solution :
A company's current liabilities are deducted from its current assets to determine its working capital.
Working capital formulas.
Working capital = current assets – current liabilities.
Hence, the correct option is 1.
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