Question : Which of the following tells the working capital?
Option 1: Difference between Current Assets and Fixed Assets
Option 2: Difference between Current Assets and Current Liabilities
Option 3: Difference between Current Liabilities and Current Assets
Option 4: None of the above.
Correct Answer: Difference between Current Liabilities and Current Assets
Solution : Current Assets - Current Liabilities = Working Capital The working capital formula calculates the amount of short-term liquid assets available after short-term liabilities are paid off. Hence 3 is the correct answer.
Question : Which of the following is correct for working capital : A) Difference between Current Assets and Current Liabilities. B) Difference between Current Assets and Fixed Assets.
Option 1: Only A
Option 2: Only B
Option 3: Both of the above
Option 4: None of the above
Question : Which of the following statements is incorrect?
Option 1: Working Capital = Current Assets - Current Liabilities
Option 2: Current Liabilities = Total Assets - Non-Current Liabilities - Shareholder's fund
Option 3: Working Capital = Equity Share Capital + Reserves & Surplus - Long Term Loan - Non-Current Assets
Question : Working capital is the difference between
Option 1: Total debt and long term debt
Option 2: Liquid assets and current liabilities
Option 3: Current assets and current liabilities
Option 4: Total assets and current liabilities
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