Working capital is
A)calculated by dividing current assets by current liabilities.
B)used to evaluate a company's liquidity and short-term debt paying ability.
C)used to evaluate a company's solvency and long-term debt paying ability.
D)calculated by subtracting current assets from current liabilities.

Question

Quizplus · Accepted Answer

Working capital is used to evaluate a company's liquidity and short-term debt paying ability, as it represents the difference between current assets and current liabilities.

Working Capital Is