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Management · Q101

Financial Management

Graduate and Post Graduate · Management · question 101

Q101

In finance, "working capital" means the same thing as

A.
Total assets
B.
Fixed assets
C.
Current assets
D.
Current assets minus current liabilities.
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
In finance, "working capital" means the same thing as current assets minus current liabilities. Working capital is the amount of cash a business can safely spend. It's commonly defined as current assets minus current liabilities.