Working Capital Is Calculated As

question 180

Multiple Choice

Working capital is calculated as:

• A) total liabilities less total assets
• B) current liabilities less current assets
• C) current assets less current liabilities
• D) total assets less total liabilities

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Definitions:

Petty Cash

Petty cash refers to a small amount of cash on hand used for paying minor expenses in an organization to avoid writing checks for small amounts.

Journal Entry

is a record in accounting that represents the recording of a financial transaction, comprising debit and credit entries.

Disbursed Accounts

These are accounts from which funds have been paid out or disbursed, typically to settle obligations or expenses.

Petty Cash Fund

A minimal sum of money maintained for the purpose of covering various minor expenditures on the spot.