Accounting for IGCSE & O level - Final Statements (Section 7 - No. 5)

What is "working capital" ?
Total assets minus total liabilities.
Non-current assets minus current liabilities.
Current assets minus current liabilities.
Current assets minus non-current assets.

Explanation

Working capital is calculated as current assets minus current liabilities. It indicates a business's ability to meet its short-term obligations.

Comments (0)

Advertisement