what is meant by working capital?

Answer Posted / sri

Generally a company needs two kinds of finances long term and
for short term. Though long term capital is important it is
the short term capital that keep a company running. It is this
short term capital which is referred to as working capital. It
is useful in meeting short term obligations. Without adequate
working capital its impossible to run a business.

It is represented by
Current assets-Current liabilities.

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