Difference Between Current Assets And Current Liabilities
We already studied about Current Assets and Current Liabilities in our previous article, but here we study about the difference between Current Assets And Current Liabilities so that we get a clear idea about these Accounting Terms. It is important to note that the difference between Current Assets And Current Liabilities represent Working Capital that is required for the smooth flow of the business. Mathematically, we ca n write as shown below: Current Assets - Current Liabilities = Net Working Capital (NWC) Here Net Working Capital is the difference between Net Current Assets - Net Current Liabilities. You may also be interested in “ Difference Between Liabilities And Owner’s Equity ” Current Assets are those resources that are used by the business within the current accounting period. Examples include Cash, Accounts Receivable, Inventory, Prepaid Expenses, Outstanding Revenues, etc. while Current Liabiliti