Net working capital is the _____.
A) difference between the company's current assets and current liabilities
B) difference between the company's current assets and fixed assets
C) sum of the firm's current assets plus the firm's current liabilities
D) firm's fixed assets plus the firm's long-term liabilities

Question

Quizplus · Accepted Answer

Net working capital is calculated as the difference between a company's current assets and its current liabilities. This metric is used to evaluate a company's short-term financial health and its ability to cover its short-term obligations with its short-term assets.

Net Working Capital Is the _____