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What does the term "working capital" refer to?
  • a)
    The total revenue of a business.
  • b)
    The difference between total assets and total liabilities.
  • c)
    The amount by which current assets exceed current liabilities.
  • d)
    The total equity of a business.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What does the term "working capital" refer to?a)The total revenue of a...
Working capital refers to the amount by which current assets exceed current liabilities, indicating the liquidity available to meet short-term obligations.
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What does the term "working capital" refer to?a)The total revenue of a business.b)The difference between total assets and total liabilities.c)The amount by which current assets exceed current liabilities.d)The total equity of a business.Correct answer is option 'C'. Can you explain this answer?
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