Accounting Dictionary

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Working Capital

Definition: Working capital is the amount of an entity's current assets minus its current liabilities, and is considered to be a prime measure of its level of liquidity. A negative level of working capital is an indicator of possible bankruptcy.