Interpretation of Accounts Using Simple Accounting Ratios Equity: Working Capital - SS2 Accounting Past Questions and Answers - page 1

The amount of money a business has available to fund its day-to-day operations.

The amount of money a business has invested in long-term assets.

The amount of money a business owes to its suppliers.

The amount of money a business has in its bank account.

Assets that can be quickly converted into cash.

Assets that are used for long-term investments.

Assets that a business has sold in the past year.

Assets that a business plans to sell in the future.

It helps businesses cover their short-term expenses.

It ensures businesses have enough money to invest in long-term assets.

It helps businesses reduce their taxes.

It helps businesses increase their profits.

It may struggle to pay its bills and could face bankruptcy.

It may have too much cash on hand.

It may have to pay more taxes than necessary.

It may have difficulty finding customers.