Practicing Success
There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below. Assertion (A): Working Capital, if deducted from Current Assets, gives the amount of Current Liabilities of a company. |
Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A). Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are not correct. Only Assertion (A) is correct. |
Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A). |
Working capital is a fundamental financial metric that represents the difference between a company's current assets and its current liabilities. It is a measure of the company's short-term financial health and its ability to cover its day-to-day operational expenses and short-term obligations. |