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    Question

    What term is used to describe the financial metric that

    represents the difference between a company's current assets and its current liabilities, to evaluate short-term financial health?
    A Net Cash Flow Correct Answer Incorrect Answer
    B Operating Margin Correct Answer Incorrect Answer
    C Working Capital Gap Correct Answer Incorrect Answer
    D Capital Expenditure Correct Answer Incorrect Answer
    E Earnings Before Interest and Taxes Correct Answer Incorrect Answer

    Solution

    The Working Capital Gap is a measure of the liquidity not covered by short-term borrowings, highlighting the difference between available resources and short-term obligations.

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