The definition of "Working Capital" is:
A) Non-Current Assets - Non-Current Liabilities
B) Bank + Cash
C) Non-Current Assets + Current Assets - Current Liabilities
D) Current Assets - Current Liabilities

Question

Quizplus · Accepted Answer

Working Capital is Current Assets less Current Liabilities.Current Assets is comprised of amounts the business "owns" or will shortly receive: Stock (Inventory), Debtors (Receivables), Prepayments, Bank if the account is "in credit" at the bank and cash.Current Liabilities are amounts which are owed: Creditors (trade and non-trade, including things like utilities), a bank overdraft, dividends due, tax due, and any accruals.

The Definition of "Working Capital" Is