Which approach gives an indication of the financial short-term solidity of an entity and its state of health? (a) The approach that considers the equation: Working capital ¼ Shareholders’ equity þ...

Which approach gives an indication of the financial short-term solidity of an entity and its state of health? (a) The approach that considers the equation: Working capital ¼ Shareholders’ equity þ Long-term debts – Fixed assets (b) The approach that considers the equation: Working capital ¼ Cash þ Receivables þ Inventories – Short-term liabilities