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Which statement best explains Working capital?

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Question ID #25904 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Correct Answer: A. Current assets minus current liabilities
Working capital: Current assets minus current liabilities

Question: Which statement best explains Working capital?

A. Current assets minus current liabilities

B. Every transaction has at least two corresponding debit-credit effects

C. Income earned but not yet received

D. Expenditure creating or improving a long-term asset or benefit

Correct Answer: A. Current assets minus current liabilitiesWorking capital: Current assets minus current liabilities

Which statement best explains Working capital? - MCQ Explanation

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Correct answer: A. Current assets minus current liabilities