Question

Fill in blank

working Capital = current Assets - ________.​

Answer 1

ANSWER :

Working Capital = Current Assets — Current Liabilities

• ★ Working Capital is equal to Current Assets minus Cureent Liabilities.

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EXPLANATION :

• ❒ Current Assets :- Current Assets are those assets which are made or acquired and held for a short period of time with a view to reselling them at a profit in the ordinary course of business. In other words, Current Assets are those assets which are meant for sale or which can be converted into cash with in one year.

• ❒ Current Liabilities :- Current Liabilities are those liabilities which are expected to be paid within a short period not exceeding one year of the date of the balance sheet. They are required to be paid out of current assets. Current Liabilities are also known as Short-term Liabilities.

• ❒ Working Capital :- Current Liabilities are paid out of Current Assets. So, after paying off the Current Liabilities out of Current Assets, the remaining portion of Current Assets are termed as Working Capital of an entity. Hence, the difference between short term liquid assets and short term liabilities is known as Working Capital.

Answer 2

Explanation:

working capital- current assets