What is working capital?

The cash available for day-to-day operations of an organization. Strictly speaking, one borrows cash ...

	Thursday, March 26, 2015 working capital   Term of the Day working capital 1. The cash available for day-to-day operations of an organization. Strictly speaking, one borrows cash (and not working capital) to be able to buy assets or to pay for obligations. Also called current capital. 2. Accounting: net liquid assets computed by deducting current liabilities from current assets. The amount of available working capital is a measure of a firm's ability to meet its ... Learn more about this term Usage Example The store owner's two-part goal was to pay off his debt as quickly as possible while maintaining sufficient working capital to comfortably manage his business.   Featured Article LAN vs. WAN Computer networks fall into one of two very broad categories, a Local Area Network (LAN) and a Wide Area Network (WAN). LANs are something most of us ... Read this article   Voice Your Opinion If you didn't have to work, what would you do with your time?   Take us with you! Download the BusinessDictionary app today.
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