Asked by Daniel Romero on Jun 03, 2024
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Working capital is the excess of the current liabilities of a business over its current assets.
Working Capital
This refers to the amount by which current assets exceed current liabilities, indicating the liquidity available to a business for day-to-day operations.
Current Liabilities
Short-term financial obligations that are due within one year or within the normal operating cycle of a business.
Current Assets
Resources anticipated to be transformed into cash, sold, or utilized within a year or during the standard operational cycle of the company.
- Recognize the attributes and calculation techniques of principal financial ratios and their effects on financial stability and fluidity.
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Learning Objectives
- Recognize the attributes and calculation techniques of principal financial ratios and their effects on financial stability and fluidity.
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