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

Question

Quizplus · Accepted Answer

Net working capital is calculated by subtracting current liabilities from current assets. This gives a measure of the company's liquidity and ability to meet short-term obligations. Option D, "current assets minus current liabilities", represents this calculation accurately.

Net Working Capital Is Defined as