What does working capital mean on the CPA exam?
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Working capital. Current assets less current liabilities. What is left to run the business after the next year's obligations are covered.
Related terms
- additional paid-in capital: Amounts received from shareholders above the par or stated value of the shares issued, reported as a separate equity caption.
- net assets: Assets less liabilities.
- net position: A government's assets plus deferred outflows, less liabilities and deferred inflows.
- total liabilities: Everything the entity owes, added up.
- California Consumer Privacy Act: California's consumer privacy statute, as amended by the CPRA.
- going concern: The assumption that the entity will keep operating long enough to realize its assets and meet its obligations.