Statement: Working capital represents the difference between expenditures the contractor must meet and payments the contractor receives from the client during the course of the project.

Question

Quizplus · Accepted Answer

Working capital in the context of a contractor or any business refers to the difference between current assets (like cash and receivables) and current liabilities (like accounts payable), which essentially represents the funds available to meet day-to-day operations and expenses, aligning with the statement provided.

Statement: Working Capital Represents the Difference Between Expenditures the Contractor