Working Capital Quiz

Working capital is a financial metric representing the operating liquidity available to a business, organization, or entity, including governmental entities.

Working capital is considered a part of operating capital, along with fixed assets such as plant and equipment.

Gross working capital is equal to current assets.

<p>If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit and negative working capital.</p> Signup and view all the answers

<p>Positive working capital is required to ensure that a firm is able to continue its operations and has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses.</p> Signup and view all the answers