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 an important measure of a company's short-term financial health and its ability to meet its financial obligations. A positive working capital indicates that the firm has enough current assets to cover its current liabilities.

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