A Company with Working Capital of $720,000 and a Current

question 64

Multiple Choice

A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability. The amount of working capital immediately after payment is

• A) $845,000
• B) $595,000
• C) $720,000
• D) $125,000

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Definitions:

Independent Contractor

An individual or entity contracted to perform work for—or provide services to—another entity as a non-employee, thereby assuming responsibility for his or her own taxes and benefits.

Employee-Contractor

A distinction used to describe the relationship between workers and those who hire them, with employees typically under the control of the employer, and contractors providing services under their own direction.

Constitutional Law

A body of law which defines the role, powers, and structure of different entities within a state, including the executive, the parliament, and the judiciary.

Discrimination Law

The body of law that prohibits unfair treatment of individuals based on certain protected characteristics such as race, gender, age, and disability.