UK Accounting Glossary
Finance provided to support the short-term assets of the business (stocks and debtors) to the extent that these are not financed by short-term creditors. It is calculated as current assets minus current liabilities.
Working capital is the capital used to finance the day-to-day operations of a company.
It’s included in the balance sheet and is calculated as the difference between current assets and current liabilities.
Working Capital = Current Assets – Current Liabilities
The excess of current assets less current liabilities. The figure represents the amount of resources the business has in a form that is readily convertible into cash. Same as net current assets.