Which financial statement reports information helpful in assessing working capital?
A)Income statement
B)Balance sheet
C)Statement of retained earnings
D)Statement of cash flows

Question

Quizplus · Accepted Answer

The balance sheet reports assets and liabilities, including current assets and current liabilities which are used to calculate working capital. Working capital is the difference between current assets and current liabilities, so the balance sheet provides information needed for this calculation. The other financial statements do not report information specifically related to working capital.

Which Financial Statement Reports Information Helpful in Assessing Working Capital