_____ is current assets, less current liabilities, that a firm uses to produce goods and services and to finance the extension of credit to customers.

Question

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Working capital is the difference between a company's current assets (cash, inventory, accounts receivable) and its current liabilities (accounts payable, short-term debt). It measures a company's ability to meet its short-term obligations and its capacity to fund its day-to-day operations. Working capital is used to purchase raw materials, pay salaries, and borrow money. It is one of the key indicators of a company's financial health and liquidity.

_____ Is Current Assets, Less Current Liabilities, That a Firm