Short-Term Liabilities & Working Capital

Felix I. Lessambo ()
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Felix I. Lessambo: Fordham University

Chapter Chapter 6 in Financial Statements, 2022, pp 83-88 from Springer

Abstract: Abstract Current liabilities refer to liabilities that are expected to liquidate within a year or a normal operating cycle, whichever is longer. Whereas working capital, sometimes called net working capital represents the excess of current assets over current liabilities and identifies the relatively liquid portion of total enterprise capital which constitutes a margin or buffer for meeting obligations within the ordinary operating cycle of the business.

Date: 2022
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DOI: 10.1007/978-3-031-15663-2_6

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