Sunday, June 5, 2011

Current Assets Less Current Liabilities

Current Assets Less Current Liabilities
 By Finance Ocean

What term refers to the difference between current assets and current liabilities?

Pick an answer:
  1. Financial Spread
  2. Gross Margin
  3. Net Margin
  4. Working Capital








Answer: # 4
Explanation: Working capital represents current assets less current liabilities. More generally, working capital measures how much in liquid assets a company has available to build its business.

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