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Current Assets Less Current Liabilities


February 22, 2011 | Accounting

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



Pick an answer:

Financial Spread
Gross Margin
Net Margin
Working Capital



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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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