Excess of current assets over current liabilities is
-
A.
deferred capital -
B.
nominal capital -
C.
working capial -
D.
authorized capital
Correct Answer: Option C
Explanation
The net working capital formula is calculated by subtracting the current liabilities from the current assets. Here is what the basic equation looks like. Typical current assets that are included in the networking capital calculation are cash, accounts receivable, inventory, and short-term investments. current assets – current liabilities = working capital