"The net amount of current assets that the firm has to fund, above and beyond those that someone else funds for them" is referred to as
A) net working capital.
B) excess capacity.
C) safety stock.
D) unfunded assets.

Question

Quizplus · Accepted Answer

Net working capital is defined as the difference between a company's current assets and its current liabilities. It represents the amount of current assets that are funded by the company's own capital, rather than by short-term debts or liabilities. This is why it is described as the net amount of current assets that the firm has to fund, above and beyond those that someone else funds for them.

"The Net Amount of Current Assets That the Firm Has