Question

list all the working capital accounts. ​(Select the best​ response.) A. The working capital accounts are the current assets and fixed assets of the company. B. The working capital accounts are the current assets and total liabilities of the company. C. The working capital accounts are the current assets and​ long-term liabilities of the company. D. The working capital accounts are the current assets and current liabilities of the company.

Answer 1

Answer:

D. The working capital accounts are the current assets and current liabilities of the company.

Explanation:

Working Capital represents the capital which is required for the day to day operations of a firm. Mathematically, the working capital is -

Current Assets - Current Liabilities

Working capital requirement of a business depends upon its size, seasonality of business,nature of the business that is whether its trading or manufacturing firm and day to day expenses amount of a business etc.

Hence, the working capital accounts are the current assets and current liabilities of the company.