[amp_mcq option1=”total assets” option2=”fixed assets” option3=”current assets” option4=”current assets minus current Liabilities” correct=”option4″]<\/p>\n
The correct answer is D. Current assets minus current liabilities.<\/p>\n
Working capital is a measure of a company’s liquidity, or its ability to meet its short-term obligations. It is calculated by subtracting current liabilities from current assets. Current assets are assets that are expected to be converted into cash or used up 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
A company with a high level of working capital is in a good position to meet its short-term obligations. A company with a low level of working capital may have difficulty meeting its short-term obligations and may be at risk of bankruptcy.<\/p>\n
Option A, total assets, is not the same as working capital. Total assets include both current and non-current assets. Non-current assets are assets that are not expected to be converted into cash or used up within one year, such as land, buildings, and equipment.<\/p>\n
Option B, fixed assets, is not the same as working capital. Fixed assets are non-current assets.<\/p>\n
Option C, current assets, is part of working capital, but it is not the same as working capital. Working capital is calculated by subtracting current liabilities from current assets.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”total assets” option2=”fixed assets” option3=”current assets” option4=”current assets minus current Liabilities” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-45172","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n