The Formula for Working Capital Is ________

question 58

Multiple Choice

The formula for working capital is ________.

• A) total assets - current liabilities
• B) current assets - current liabilities
• C) total assets - total liabilities
• D) current assets - total liabilities

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Definitions:

Variable Costs

Expenses that change in direct proportion to the amount of goods or services produced, including costs for labor and materials.

Net Cash Inflow

The difference between a company's cash inflows and outflows over a specific period, indicating net cash earned.

Net Cash Outflow

The result when the cash outgoings (expenses, payments) of a business exceed the incoming cash flow over a specific period of time.

Project

A temporary endeavor with a defined beginning and end, undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value.