Asked by Tatayana Williams on Jun 29, 2024
Verified
Current assets minus current liabilities is:
A) Profit margin.
B) Financial leverage.
C) Current ratio.
D) Working capital.
E) Quick assets.
Working Capital
The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.
Current Liabilities
Short-term financial obligations that are due within one year or within the normal operating cycle of the business.
- Comprehend and determine the concept of working capital along with its importance.
Verified Answer
Learning Objectives
- Comprehend and determine the concept of working capital along with its importance.
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