Quiz: Working Capital: Meaning and Calculation
WJEC Eduqas GCE A LEVEL in BUSINESS specification
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Building on what you've learned about budgets and balance sheets, let's test your understanding of working capital and how to calculate it!
What is working capital?
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Which of the following are included in current liabilities? (Select all that apply)
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Working capital measures a company's {{blank0}} and is calculated as {{blank1}} minus current liabilities.
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Match the items on the left with their correct pairs on the right
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A company has current assets of £50,000 and current liabilities of £20,000. What is its working capital?
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Why is positive working capital important for a business?
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Which of the following could cause a decrease in working capital? (Select all that apply)
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Match the items on the left with their correct pairs on the right
A business has £15,000 in cash, £10,000 in inventory, and £5,000 in trade receivables. Its current liabilities are £12,000. What is its working capital?
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