What term refers to the amount of total current assets less total current liabilities?

The term that refers to the amount of total current assets less total current liabilities is "working capital." Working capital is a measure of a company's short-term financial health and operational efficiency. It indicates the liquidity available to a business for its day-to-day operations. By subtracting total current liabilities from total current assets, working capital provides insight into whether the company can cover its short-term obligations with its short-term assets. A positive working capital indicates that the company can easily manage its short-term liabilities, while a negative working capital could signal potential financial difficulties.

In contrast, liquidity refers to the overall ability of an organization to meet its short-term obligations, which encompasses a broader range of ratios and measures, rather than specifically the difference between current assets and liabilities. Net assets and equity have different definitions, dealing with total assets and liabilities rather than focusing exclusively on current assets and liabilities.