Question

The difference between a firm's current assets and its current liabilities is known as the _____.

a) Long-term capital
b) Net working capital
c) Net opportunity capital
d) Capital structure

Answer 1

The difference between a firm's current assets and its current liabilities is known as Net working capital. Net working capital is a measure of the firm's liquidity and its ability to meet short-term obligations.

Step-by-step explanation:

The difference between a firm's current assets and its current liabilities is known as Net working capital. Net working capital is a measure of the firm's liquidity and its ability to meet short-term obligations. It represents the amount of money available to a company for day-to-day operations.