Working capital is represented by current assets less current liabilities for short-term working capital, whereas long-term working capital is total assets less total liabilities.

Question

Quizplus · Accepted Answer

Working capital is represented by current assets less current liabilities for short-term working capital, whereas permanent working capital is total assets less total liabilities. Long-term working capital is not a commonly used term in finance.

Working Capital Is Represented by Current Assets Less Current Liabilities