BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Excess of Current Assets over Current Liabilities
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Excess of Current Liabilities over Current Assets
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Excess of Fixed Assets over Current Liabilities Fixed Cost
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Excess of Current Assets over Fixed Assets
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Detailed explanation-1: -Net working capital means current assets minus current liabilities. The difference between current assets and current liabilities is called the net working capital. If the net working capital is positive, business is able to meet its current liabilities.
Detailed explanation-2: -Working capital is the amount of current assets that’s left over after subtracting current liabilities. It’s what can quickly be converted to cash to pay short-term debts. Working capital can be a barometer for a company’s short-term liquidity. A positive amount of working capital indicates good short-term health.
Detailed explanation-3: -Key Takeaways. Working capital, also called net working capital, represents the difference between a company’s current assets and current liabilities.
Detailed explanation-4: -Answer and Explanation: It is true that working capital is the excess of current assets over current liabilities.