Examveda
Examveda

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: Option D

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Comments ( 3 )

  1. Mudassar Hussain
    Mudassar Hussain :
    5 months ago

    The correct option is Current Assets.
    Net working capital means current assets minus current liabilities while working capital means current assets.

  2. Anushka Kapoor
    Anushka Kapoor :
    4 years ago

    Correct answer is option c
    Option d means net working capital
    When talking in terms of finance , we talk abt gross wrking capital tht means current assets

  3. Jitendra Kumar
    Jitendra Kumar :
    6 years ago

    How ans c is correct

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process