5 Questions
What does working capital represent?
Operating liquidity available to a business
How is gross working capital calculated?
Equal to current assets
What does a working capital deficiency indicate?
Negative working capital
Why is positive working capital important for a firm?
To continue operations and satisfy short-term debt
What does the management of working capital involve?
Managing inventories and accounts receivable
Test your knowledge of working capital with this quiz! Explore the concept of working capital, its calculation, and its significance in financial management. Sharpen your understanding of this crucial financial metric and its impact on business operations.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
