Question

The mode of the funds of a business are invested in working capital it indicates

Answer 1

Answer:

Working capital is the dollar amount left over after current liabilities are subtracted from current assets. It's used to determine if a business has enough assets to pay debts due in one year. The working capital formula is used to calculate the money available to pay these short-term debts.

Answer 2

Explanation:

If a company has very high net working capital, it has more than enough current assets to meet all of its short-term financial obligations. In general, the higher a company's working capital, the better.. This means their short-term debts outweigh their liquid assets.