In the context of balance sheets, the current assets of a firm minus its current liabilities are referred to as the ________.

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Working capital is the amount of money a company has available to fund its day-to-day operations. It is calculated by subtracting current liabilities (such as bills due within a year) from current assets (such as cash and inventory) on the company's balance sheet. This measure shows how much money a company has left over to reinvest in itself or pay off debts after covering its short-term obligations.

In the Context of Balance Sheets, the Current Assets of a Firm