Accounting for IGCSE & O level - Final Statements (Section 12 - No. 4)
What is 'working capital' used to assess?
A company's profitability.
A company's ability to meet its short-term obligations.
A company's long-term solvency.
The efficiency of the company's operations.
Forklaring
Working capital is a measure of a company's short-term liquidity (ability to pay off short-term liabilities).