Question:

What is working capital?

Answer hidden.

Answer:

Working Capital = Current Assets  - Current Liabilities.

The working capital formula tells us the short-term liquid assets remaining after all of the short-term liabilities have been paid off. It is a measure of a company’s short-term liquidity.

Positive working capital means that a company can pay off its short-term liabilities with its short term assets.

Other

Accounting

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