Working capital is computed as:
A) Long-term assets - Long-term liabilities.
B) Current assets ¸ Current liabilities.
C) Current assets - Long-term assets.
D) Current assets - Current liabilities.

Question

Quizplus · Accepted Answer

Working capital is the difference between current assets and current liabilities. This formula helps to measure a company's short-term financial health and ability to cover its short-term obligations with its current assets.

Working Capital Is Computed As