Asked by
Gabrielle Cooke
on Oct 28, 2024Verified
Working capital is a measure of long-term liquidity and is calculated by subtracting the current liabilities from the current assets.
Working Capital
Working capital is the difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.
Long-Term Liquidity
Measures a company's ability to meet its long-term financial obligations, indicating financial health over a prolonged period.
- Grasp the concept of working capital and its calculation.
Verified Answer
AG
Learning Objectives
- Grasp the concept of working capital and its calculation.
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