Net working capital includes:
A)a land purchase.
B)an invoice from a supplier.
C)non-cash expenses.
D)fixed asset depreciation.
E)the balance due on a 15-year mortgage.

Question

Net working capital includes:  
A)a land purchase.
B)an invoice from a supplier.
C)non-cash expenses.
D)fixed asset depreciation.
E)the balance due on a 15-year mortgage.

Quizplus · Accepted Answer

Net working capital refers to the difference between current assets and current liabilities. An invoice from a supplier would be considered a current liability as it represents an amount owed to be paid within a short period of time. The other options do not represent current assets or liabilities.

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