Working Capital Is Defined As

question 26

Multiple Choice

Working capital is defined as:

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

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Definitions:

Operating Activities

Activities that are directly related to the primary operations of a company, such as manufacturing, distributing, marketing, and selling a product or service.

Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders.

Dividend Expense

Typically, this is a misnomer as dividends are not expensed but are distributions of earnings to shareholders from the retained earnings of a company.