The difference between current assets and current liabilities is known as:

Question

Quizplus · Accepted Answer

The difference between current assets and current liabilities is known as net working capital. This represents the amount of funds that a company has available to meet its short term financial obligations. Working capital is simply the total amount of current assets minus current liabilities, while net working capital takes into account all current assets and liabilities, including those that are unlikely to be converted into cash quickly or easily. Terminal capital and marginal capital are not commonly used financial terms.

The Difference Between Current Assets and Current Liabilities Is Known