Most firms elected to define funds in the statement of changes in financial position as:
A)cash.
B)working capital.
C)current assets.
D)owners' equity.

Question

Quizplus · Accepted Answer

Most firms chose to define funds in the statement of changes in financial position as working capital, which is the difference between current assets and current liabilities, providing a measure of a firm's short-term financial health and its ability to cover its short-term liabilities with its short-term assets.

Most Firms Elected to Define Funds in the Statement of Changes