Net working capital is defined as:
A) the current assets in a business.
B) the difference between current assets and current liabilities.
C) the present value of short-term cash flows.
D) the difference between all assets and liabilities.

Question

Quizplus · Accepted Answer

Net working capital is calculated as the difference between a company's current assets and its current liabilities, providing a measure of its short-term liquidity and operational efficiency.

Net Working Capital Is Defined As