Net working capital refers to which of thefollowing? a. Cash, accounts receivabl

Question

Net working capital refers to which of thefollowing?
a. Cash, accounts receivable, and inventory. b. Notes payable, accruals, and accounts payable. c. Current assets plus current liabilities. d. Current assets divided by current liabilities. e. Current assets minus current liabilities Net working capital refers to which of thefollowing?
a. Cash, accounts receivable, and inventory. b. Notes payable, accruals, and accounts payable. c. Current assets plus current liabilities. d. Current assets divided by current liabilities. e. Current assets minus current liabilities

Explanation / Answer

Net Working Capital   = Currenst Assets -Current Liabilities Answer is Option (e) Current Assets minus CurrentLiabilities

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