Working capital means "excess of Current Assets over Current Liablities... which is the liquid portion of the total capital... a margin or bufferfor liabilities payable within the ordinary operating cycle of the business." This approach defines a current item as a liquid item. Thus, a Current Asset is an asset which will be realised or liquidated in the near future. Similiarly, under this approach, Current Liability is the liability which will have to be paid in the near future. The amount of Working Capital, under this approach, shows the amount of buffer, margin or Fund available to meet current liabilities and when they arise.