Net working capital is defined as:
A) Total liabilities minus shareholders' equity.
B) Current liabilities minus shareholders' equity.
C) Fixed assets minus shareholders' equity.
D) Total assets minus total liabilities.
E) Current assets minus current liabilities.

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities, reflecting a company's short-term financial health and its ability to cover its short-term liabilities with its short-term assets.

Net Working Capital Is Defined As