The difference of current assets and the working capital is equal to __________?
Correct answer: A. current liabilities
- A. current liabilities
- B. long-term liabilities
- C. residual assets value
- D. net residual incomeCompare Credit Cards
Explanation
Since working capital equals current assets minus current liabilities, subtracting working capital from current assets leaves current liabilities. This can be rearranged as 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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