Value derived by subtracting current liabilities from current assets is called:
A) Operating cash flow.
B) Net capital spending.
C) Net working capital.
D) The liquid asset value.
E) Cash flow from assets.

Question

Quizplus · Accepted Answer

Net working capital is calculated by subtracting current liabilities from current assets, which reflects a company's short-term financial health and its ability to cover its short-term liabilities with its short-term assets.

Value Derived by Subtracting Current Liabilities from Current Assets Is