Question: Select the correct answer or write short answers. (a) What do you mean by Working Capital and Current ratio of a business? Working Capital- Current

Select the correct answer or write short answers. (a) What do

Select the correct answer or write short answers. (a) What do you mean by "Working Capital" and "Current ratio of a business? Working Capital- Current liabilities- Current Assets Current Assets-Current liabilities Quick Assets - Current Assets Current ratio Current assets/Current liabilities Quick Assets /Current liabilities Current liabilities/ Current assets (b) An organization is having following current assets and current liabilities extracted from a Trial Balance. Rs. Stock 160,000 Debtors 80,000 Creditors 75,000 Accrued expenses 6,000 Cash in Hand 40,000 Bank overdraft 3,000 Calculate, (1) Working capital-Rs. (ii) Current ratio- (iii)Comment on the stability of the business whether stable or not

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