Net operating working capital,defined as current assets minus the difference between current liabilities and notes payable,is equal to the current ratio minus the quick ratio.

Question

Quizplus · Accepted Answer

Net operating working capital is calculated as current assets minus current liabilities, excluding notes payable. The current ratio and quick ratio are different financial metrics and are not directly related to the calculation of net operating working capital.

Net Operating Working Capital,defined as Current Assets Minus the Difference