Concept:The difference between current assets and current liabilities is called working capital.
Explanation:Current assets are short-term resources like cash, debtors, and stock.
Current liabilities are short-term obligations like creditors and bank overdrafts.
Working capital measures the operating liquidity available for daily business activities.
It is calculated using the formula:
Working Capital=Current Assets−Current LiabilitiesA positive working capital shows the business can cover its short-term debts.
It is also known as net working capital.
Nominal capital, capital employed, and issued capital are not defined by this difference.
Therefore, the correct option is A.
Answer:A. Working capital