Working capital is the difference between which two?
ATotal assets and reserves
BFixed assets and capital
CCurrent assets and liabilities
DRevenue and net earnings
Answer & Solution
Correct answer: C. Current assets and liabilities
Working capital equals cash-convertible resources less near-term cash requirements.
Keep practising Financial Management
Browse all Financial Management questions for CA Inter, or explore more Financial Management topics.
Related questions
The cash conversion cycle measures which risk entailed by growth?A negative cash conversion cycle means a firm collects from customers?Inventory period is 45 days and receivables period is 30 days. The operating cycle is?In common law jurisdictions, to whom do directors owe fiduciary duties?Mandatory audits of financial statements help reduce what?Which pay design best aligns managers with the owners' interests?A manager who expands firm size instead of profits is engaged in what?In the shareholder and management agency problem, who is the agent?