Net working capital is defined as

Question

Quizplus · Accepted Answer

Net working capital is calculated as the difference between a company's current assets and current liabilities. It represents the funds that a company has available to meet its short-term financial obligations. Option B refers to the concept of asset financing, which is not relevant to net working capital. Option C is the reverse calculation of net working capital and is incorrect. Option D is not accurate since net working capital is not a ratio measure but rather an absolute value.

Net Working Capital Is Defined as