BANKING AFFAIRS

Detailed explanation-1: -Working capital, also called net working capital, represents the difference between a company’s current assets and current liabilities. Working capital is a measure of a company’s liquidity and short-term financial health.

Detailed explanation-2: -The main difference between current assets and current liabilities is that current assets are items of value that a company expects to convert into cash within one year, while current liabilities are debts that must be paid within one year.

Detailed explanation-3: -The major difference in both terms is on the basis of nature. The current assets are those things that will provide us with benefits in the future by making the availability of cash in the business. but liabilities are those things, which the business has to pay in the future.