Net working capital is defined as:
A) current assets plus fixed assets.
B) current assets plus stockholders' equity.
C) fixed assets minus long-term liabilities.
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, which helps in assessing a company's ability to meet its short-term obligations with its short-term assets.

Net Working Capital Is Defined As