Match the term with its definition.
-A measure of a company's liquidity, equal to current assets less current liabilities
A)cash budget
B)line of credit
C)net working capital
D)percentage-of-sales technique
E)pro forma financial statements
F)spontaneous debt financing

Question

Quizplus · Accepted Answer

Net working capital is defined as current assets minus current liabilities and is used as a measure of a company's liquidity.

Answer: E 
 Pro forma financial statements are projected financial statements that are typically based on historical data and used for planning and forecasting purposes.

Answer: F 
 Spontaneous debt financing refers to funding that a business receives through its normal operations, such as through accounts payable or trade credit.

Match the Term with Its Definition