Net working capital is ________.
A) the combined total of a firm's equity capital and net losses
B) the difference between a firm's current assets and current liabilities
C) the difference between a firm's expected profits and current debts
D) any currency deposited in a bank outside its country of origin

Question

Quizplus · Accepted Answer

Net working capital is defined as the difference between a firm's current assets and current liabilities. This metric is used to assess a company's short-term financial health and its ability to cover its short-term obligations with its short-term assets.

Net Working Capital Is ________