Working Capital Is Current Assets Divided by Current Liabilities

question 155

True/False

Working capital is current assets divided by current liabilities.

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Definitions:

Non-inventory Item

A non-inventory item is a type of product or service that a business sells or buys but does not track as part of its inventory.

Specific Customer Job

A particular project or task undertaken for a specific client, often used in the context of billing or project management.

Vendor Transaction

A financial operation involving a business and a vendor, typically regarding procurement of goods or services.

Receive Bills

A function in accounting software that allows a business to record and track bills received from suppliers before payment is made.