The Difference Between a Firm's Current Assets and Its Current

question 59

Multiple Choice

The difference between a firm's current assets and its current liabilities is

• A)Cash flow.
• B)Working capital.
• C)Current ratio.
• D)Return on Assets.

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Definitions:

Accounting Profit

Accounting profit is the monetary gain calculated by subtracting total explicit costs from total revenue.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and therefore should not affect current and future business decisions.

Nonrefundable Ticket

A type of ticket for which the cost is not returned to the purchaser if they decide to cancel their booking or are unable to use the ticket.

Soccer Match

A competitive game of soccer played between two teams, adhering to specific rules and durations as specified by the sport's governing body.