Question

refers to the excess of current assets over current liabilities ​

Answer 1

Answer:

The formula for calculation of "Net working capital" is as follows:

Net working capital = Total current assets - Total current liabilities

Net working capital is the aggregate amount of all current assets minus current liabilities. It is used to measure the short-term liquidity of a business, and can also be used to obtain a general impression of the ability of a company management to utilize assets in an efficient manner.

Answer 2

Networking capital refers to the excess of current assets over current liabilities ​

The following is the formula for calculating "Net working capital":

Total current assets − Total current liabilities = Net working capital

• The sum of all current assets minus current liabilities is known as networking capital.
• It is used to assess a company's short-term liquidity and to get an overall sense of its management's capacity to efficiently utilize assets.