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

question 56

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) Working capital = current assets × current liabilities
• E) Current liabilities = current assets / working capital

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Definitions:

Fundamental Attribution Error

The tendency to overestimate the effect of disposition or personality and underestimate the effect of situation in explaining social behavior.

Situational Factors

External influences that affect an individual's behavior and decision-making process in various environments.

Individual Factors

Personal attributes or characteristics that can influence behavior, decisions, and outcomes.

Social Problems

Issues that adversely affect an individual's or group's well-being in society, often requiring collective solutions to address.