What Is the Correct Method for Calculating Working Capital

question 171

Multiple Choice

What is the correct method for calculating working capital?

• A) Total Assets minus Total Liabilities
• B) Current Assets minus Total Liabilities
• C) Current Assets minus Current Liabilities
• D) Current Assets plus Current Liabilities

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Definitions:

Butane

A gaseous hydrocarbon (C4H10) that is a constituent of natural gas and petroleum, used as a fuel and in the manufacture of organic compounds.

Propane

A flammable hydrocarbon gas used as a fuel for heating, cooking, and in some vehicles, also known as liquefied petroleum gas (LPG) when stored under pressure.

Natural Gas

A combustible hydrocarbon mainly made up of methane, utilized for generating heat, cooking food, and producing electricity.

Net Useful Energy Yield

The difference between the energy produced by a system and the energy consumed to create that energy, indicating the efficiency of energy production.