Question : Which of the following tells the working capital?
Option 1: Difference between Current Assets and Fixed Assets
Option 2: Difference between Current Assets and Current Liabilities
Option 3: Difference between Current Liabilities and Current Assets
Option 4: None of the above.
Answer (1)
21st Jan, 2024
Correct Answer: Difference between Current Liabilities and Current Assets
Solution :
Current Assets - Current Liabilities = Working Capital
The working capital formula calculates the amount of short-term liquid assets available after short-term liabilities are paid off.
Hence 3 is the correct answer.
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