[amp_mcq option1=”Voucher configuration” option2=”Profit & Loss configuration” option3=”Balance Sheet configuration” option4=”Ledger configuration” correct=”option2″]
The correct answer is: B. Profit & Loss configuration
Working capital is a measure of a company’s liquidity and efficiency. It is calculated by subtracting current liabilities from current assets. Current assets are assets that are expected to be converted into cash within one year, such as cash, accounts receivable, and inventory. Current liabilities are liabilities that are due within one year, such as accounts payable and short-term debt.
The Profit & Loss configuration is where the company’s income statement is created. The income statement shows the company’s revenues, expenses, and net income. The net income is the company’s profit or loss for the period. The Profit & Loss configuration is where the working capital figure is calculated.
The other options are incorrect because they do not affect the working capital figure.
- The Voucher configuration is where the company’s vouchers are created. Vouchers are documents that authorize the payment of expenses or the receipt of revenue. The Voucher configuration does not affect the working capital figure.
- The Balance Sheet configuration is where the company’s balance sheet is created. The balance sheet shows the company’s assets, liabilities, and equity. The balance sheet does not affect the working capital figure.
- The Ledger configuration is where the company’s ledgers are created. Ledgers are books that record the company’s financial transactions. The Ledger configuration does not affect the working capital figure.