Working Capital Is Calculated by Taking

question 179

Multiple Choice

Working capital is calculated by taking

• A)current assets plus current liabilities.
• B)current assets minus current liabilities.
• C)current assets divided by current liabilities.
• D)current assets times current liabilities.

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Definitions:

Private Company

A business entity owned by private investors, shareholders or owners, and not publicly traded on stock exchanges.

ASPE

A collection of accounting principles for private corporations in Canada.

Quarterly

Occurring every three months or four times a year.