- 1 Marks
Question
The excess of current assets over current liabilities is referred to as?
Answer
Working capital
Explanation: Working capital is the excess of current assets over current liabilities. It represents the short-term liquidity available to a business to meet its day-to-day financial obligations and is a key measure of operational efficiency.
- Tags: Current Assets, Current Liabilities
- Level: Level 1
- Topic: Accounting Concepts
- Series: NOV 2011
- Uploader: Theophilus