If the working capital is $265000 and the current liabilities are $378000, then the current assets can be ______________?
Correct answer: B. $643,000
- A. $113,000
- B. $643,000
- C. $743,000
- D. $543,000
Explanation
Working capital equals current assets minus current liabilities, so current assets are $265,000 + $378,000 = $643,000. The key relationship is CA = WC + CL.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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