Question

Working capital gap is

(A) Equal to current assets plus current liabilities including bank borrowings
(B) Equal to current assets less current liabilities including bank borrowings
(C) Equal to current assets less current liabilities excluding bank borrowings
(D) None of the above​

Answer 1

Explanation:

Working capital gap = aggregate of current assets – interest free credit. Net Working Capital = working capital gap – short-term borrowings.