The Excess of a Company's Current Assets Over Current Liabilities

question 7

True/False

The excess of a company's current assets over current liabilities is called working capital.

---

Definitions:

Entity Principle

An accounting concept that treats a business as separate from its owners or other businesses for financial reporting.

Executive Officers

High-ranking executives who are responsible for managing the operations and resources of a company, making major corporate decisions, and ensuring the company's operational success.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares rather than cash.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.