What Is the Formula for Measuring a Firm's Working Capital

question 83

Multiple Choice

What is the formula for measuring a firm's working capital?

• A) current assets = working capital - current liabilities
• B) working capital = current assets - current liabilities
• C) current liabilities = current assets - working capital
• D) none of the above

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Definitions:

Corrective Actions

Steps taken to eliminate the causes of existing nonconformities or undesirable situations, with the goal of preventing recurrence.

Yardsticks

Standards or measures used for comparison or evaluation.

Objectives

Specific, measurable goals that an organization or individual aims to achieve within a specific timeframe to drive performance.

Preventive Maintenance

A proactive approach aimed at performing maintenance on equipment and facilities to prevent unexpected breakdowns and downtime.