Question on: JAMB Commerce - 2018
What is the difference between current assets and current liabilities?
A
Working capital
B
nominal capital
C
capital employed
D
issued capital
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Correct Option: A
Working capital is the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
Working capital, also known as net working capital, is the difference between a company's current assets, like cash, accounts receivable (customers' unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, like accounts payable
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