Net working capital is defined as:
A)total liabilities minus shareholders' equity.
B)current liabilities minus shareholders' equity.
C)non-current assets minus non-current 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. This shows the amount of funds a company has available for day-to-day operations and investments after paying off its current liabilities.

Net Working Capital Is Defined As