Net working capital is defined as _____.
A) total current assets
B) current assets minus current liabilities
C) total assets minus total liabilities
D) current assets plus current liabilities

Question

Quizplus · Accepted Answer

Net working capital is defined as current assets minus current liabilities. This reflects the amount of funds a company has available for its day-to-day operations. By subtracting current liabilities from current assets, we can calculate the net amount of liquidity a company has to operate its business.

Net Working Capital Is Defined as _____