What does working capital measure?

A) the excess of a business's assets over its liabilities
B) the excess of a business's current assets over its liabilities
C) the excess of a business's current assets over its current liabilities
D) the excess of a business's net income over its current liabilities

Working capital is a measure of a business's ability to meet its short-term financial obligations. It is calculated as the excess of a business's current assets (such as cash, inventory, and accounts receivable) over its current liabilities (such as accounts payable and short-term debt). Option C is the only choice that accurately represents this calculation. Options A and B do not include the current portion of liabilities, while option D does not take into account current assets, and instead focuses on net income.