The difference between a firm's current assets and its current liabilities is
A)cash flow.
B)working capital.
C)current ratio.
D)return on Assets.

Question

Quizplus · Accepted Answer

The difference between a firm's current assets and its current liabilities is known as working capital. Working capital is a measure of a firm's short-term liquidity and ability to meet its current obligations. It is important for a company to have enough working capital to cover its short-term expenses and debts.

The Difference Between a Firm's Current Assets and Its Current