Asked by Tatayana Williams on Jun 29, 2024

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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.
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SB
Shanaaria BrownJul 06, 2024
Final Answer :
D
Explanation :
Working capital is defined as current assets minus current liabilities. This measure provides an indication of an organization's liquidity and ability to pay its short-term obligations.