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Business

Finance

What is the meaning of current liabilities in Working Capital Management?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 17MC: Working capital is an indication of the firms ________. A. asset utilization B. amount of noncurrent...

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Question

8.-
What is the meaning of current liabilities in Working Capital Management?

A) Source of financing of its current assets.

B) Source of financing of its fixed assets

C) Source of financing of stockholders' equity

D) Source of financing of its long-term liabilities.

(Choose one option)

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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