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CTP · Question #738

(Topic 8) What is the MOST appropriate definition of working capital?

The correct answer is C. Current assets minus current liabilities. See the full explanation below for the reasoning.

Question

(Topic 8)

What is the MOST appropriate definition of working capital?

Options

ACurrent liabilities plus equity
BCurrent assets plus equity
CCurrent assets minus current liabilities
DCurrent assets minus fixed assets

How the community answered

(67 responses)

A
4% (3)
B
13% (9)
C
79% (53)
D
3% (2)

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