Which of the Following Accurately Describes Working Capital

question 61

Multiple Choice

Which of the following accurately describes working capital?

• A)Cost of sales divided by average inventory
• B)Total debt minus shareholders' equity
• C)Current assets minus inventory
• D)Current assets minus current liabilities

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Definitions:

Chemically Altered

A term describing a substance whose chemical composition has been changed through a reaction or process.

CAMP

Cyclic adenosine monophosphate; a second messenger important in many biological processes.

Protein Kinase

Class of enzymes that phosphorylates other proteins. Many of these kinases are responsive to other chemical signals (e.g., cAMP, cGMP, insulin, epidermal growth factor, calcium, and calmodulin).

Intracellular Mediator

Molecules inside cells that transmit signals from a cell receptor to a target, playing a key role in cell signaling pathways.