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Tags
#analyst-notes #cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets
Question
The excess of total current assets over total current liabilities is referred to as [...]
Answer
working capital.

Tags
#analyst-notes #cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets
Question
The excess of total current assets over total current liabilities is referred to as [...]
Answer
?

Tags
#analyst-notes #cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets
Question
The excess of total current assets over total current liabilities is referred to as [...]
Answer
working capital.
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Subject 1. Components and Format of the Balance Sheet
These are obligations that are reasonably expected to be liquidated either through the use of current assets or the creation of other current liabilities within one year or within the operating cycle, whichever is longer. <span>The excess of total current assets over total current liabilities is referred to as working capital. It represents the net amount of a company's relatively liquid resources; that is, it is the liquid buffer, or margin of safety, available to meet the financial demands of the operating

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