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What is the difference between current assets a... - JAMB Commerce 2018 Question

What is the difference between current assets and current liabilities?

A
Working capital
B
nominal capital
C
capital employed
D
issued capital
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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