Working capital is the difference between
A) current assets and income.
B) fixed assets and operating expenses.
C) income and selling expenses.
D) current assets and current liabilities.
E) long-term liabilities and current liabilities.

Question

Quizplus · Accepted Answer

Working capital is a measure of a company's liquidity and is calculated by subtracting current liabilities from current assets. Therefore, the difference between current assets and current liabilities is the correct answer.

Working Capital Is the Difference Between