Question

The assets net of current liabilities is working capital.

• A. current
• B. non-current
• C. fixed
• D. intangible

Answer 1

The correct option is A current

The current assets net of current liabilities is working capital. Working capital is a liquidity calculation that measures a company's ability to pay off its current liabilities with current assets. If a company can't meet its current obligations with current assets, it will be forced to use it's long-term assets, or income producing assets, to pay off its current obligations.