alleryStart learning →Working capital is usually spoken about in how many versions?
ANine versions
BTwo versions
CTen versions
DSix versions
Answer & Solution
Correct answer: B. Two versions
1. One version counts only what the company owns in the short term.
2. The other subtracts what it owes in the short term.
3. Working capital is often spoken about in two versions.
4. They are gross working capital and net working capital.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 19 'The Importance of Trade Credit and Working Capital in Planning', sections 19.1-19.5_
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