Respuesta :
Working capital is the excess of the current assets of a business over its current liabilities.
Hence, Option C is the correct answer.
What is Working Capital?
- Working capital, also known as net working capital (NWC), is the difference between a company's current assets such as cash, accounts receivable/unpaid customer invoices, raw material, and finished product inventories, and current liabilities such as accounts payable. and debt.
- It is a commonly used measurement to measure the short-term financial health & Company's liquidity of an organization.
- A company's operating expenses are negative if the ratio of current assets to liabilities is less than 1 (or if current liabilities are greater than current assets).
- Positive working capital indicates that a company can fund its current operations and invest in future activities and growth.
- High working capital is not always a good thing. This may indicate that the company has excess inventory, is not investing excess cash, or is not taking advantage of low-cost debt financing opportunities.
Thus, working capital means the excess of CA over CL.
Hence, Option C is the correct answer
To know more about working capital refer to:
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