Define the term Working Capital.
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ᴡʜᴀᴛ ɪs ᴡᴏʀᴋɪɴɢ ᴄᴀᴘɪᴛᴀʟ?
ᴡᴏʀᴋɪɴɢ ᴄᴀᴘɪᴛᴀʟ, ᴀʟsᴏ ᴋɴᴏᴡɴ ᴀs ɴᴇᴛ ᴡᴏʀᴋɪɴɢ ᴄᴀᴘɪᴛᴀʟ (ɴᴡᴄ), ɪs ᴛʜᴇ ᴅɪғғᴇʀᴇɴᴄᴇ ʙᴇᴛᴡᴇᴇɴ ᴀ ᴄᴏᴍᴘᴀɴʏ's ᴄᴜʀʀᴇɴᴛ ᴀssᴇᴛs, sᴜᴄʜ ᴀs ᴄᴀsʜ, ᴀᴄᴄᴏᴜɴᴛs ʀᴇᴄᴇɪᴠᴀʙʟᴇ (ᴄᴜsᴛᴏᴍᴇʀs' ᴜɴᴘᴀɪᴅ ʙɪʟʟs) ᴀɴᴅ ɪɴᴠᴇɴᴛᴏʀɪᴇs ᴏғ ʀᴀᴡ ᴍᴀᴛᴇʀɪᴀʟs ᴀɴᴅ ғɪɴɪsʜᴇᴅ ɢᴏᴏᴅs, ᴀɴᴅ ɪᴛs ᴄᴜʀʀᴇɴᴛ ʟɪᴀʙɪʟɪᴛɪᴇs, sᴜᴄʜ ᴀs ᴀᴄᴄᴏᴜɴᴛs ᴘᴀʏᴀʙʟᴇ.
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Answer: 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.
Explanation:
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