Question

defination of working capital​

Answer 1

Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital.

Answer 2

Working capital affects many aspects of your business, from paying your employees and vendors to keeping the lights on and planning for sustainable long-term growth. In short, working capital is the money available to meet your current, short-term obligations.

_________OR_____________

Working capital is referred to as the capital that is essential for running the day to day operations of a business. Therefore, it is the difference between current liabilities and current assets.

EXAMPLES :-

Cash, inventory, accounts receivable and cash equivalents are some of the examples of the working capitals.