What is working capital and how is it calculated?
Working capital shows the ability of the company by looking at whether the company can pay its current debt with its current assets or cannot pay. Working capital is an essential check of financial health.
Calculation of Working Capital:-
Current Ratio= Current Assets / Current Liabilities
Point to be noted: Go through this Q&A very thoroughly as this is one of the essential technical accounting interview questions
BY Best Interview Question ON 09 Apr 2019