[amp_mcq option1=”Voucher configuration” option2=”Profit & Loss configuration” option3=”Balance Sheet configuration” option4=”Ledger configuration” correct=”option2″]<\/p>\n
The correct answer is: B. Profit & Loss configuration<\/strong><\/p>\n 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.<\/p>\n 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.<\/p>\n The other options are incorrect because they do not affect the working capital figure.<\/p>\n [amp_mcq option1=”Voucher configuration” option2=”Profit & Loss configuration” option3=”Balance Sheet configuration” option4=”Ledger configuration” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[671],"tags":[],"class_list":["post-15556","post","type-post","status-publish","format-standard","hentry","category-tally","no-featured-image-padding"],"yoast_head":"\n\n