The difference between current assets of a firm and its current liabilities is called
A)net tangible fixed assets.
B)net working capital.
C)gross working capital.
D)net worth.

Question

Quizplus · Accepted Answer

The difference between current assets and current liabilities is known as net working capital. It represents the amount of short-term assets that are available to the company to run its operations. Gross working capital includes all current assets without deducting current liabilities, while net worth represents the value of assets after liabilities are deducted. Net tangible fixed assets, on the other hand, refer to the value of fixed assets like property, plant, and equipment, after deducting accumulated depreciation.

The Difference Between Current Assets of a Firm and Its