Aardvark needs to calculate its current working capital in order to assess its current financial state.Which of the following questions would BEST help answer the question of what the company's working capital is?
A) What are the company's current liabilities?
B) What is the interest rate on outstanding loans to the company?
C) How much of the company's assets are used as collateral?
D) What is the company's credit history like?
E) What is the risk rating of the company's bonds?

Question

Quizplus · Accepted Answer

A)Subtracting the company's current liabilities from its current assets will give the company's current working capital. The other choices do not directly relate to the calculation of working capital.

Aardvark Needs to Calculate Its Current Working Capital in Order