Question

    A company has a Current Asset of ₹40 lakh and Current

    Liabilities of ₹30 lakh. Calculate the Working Capital Gap.
    A ₹10 lakh Correct Answer Incorrect Answer
    B ₹20 lakh Correct Answer Incorrect Answer
    C ₹30 lakh Correct Answer Incorrect Answer
    D ₹40 lakh Correct Answer Incorrect Answer
    E ₹50 lakh Correct Answer Incorrect Answer

    Solution

    Explanation: The Working Capital Gap is calculated as Current Assets minus Current Liabilities. Here, Working Capital Gap = ₹40 lakh - ₹30 lakh = ₹10 lakh. This gap represents the amount of funding required to cover short-term liabilities.  

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