Net working capital is:
A)the difference between the company's current assets and current liabilities.
B)the difference between the company's current assets and fixed assets.
C)the sum of the firm's current assets plus the firm's current liabilities
D)the firm's fixed assets plus the firm's long-term liabilities.

Question

Quizplus · Accepted Answer

Net working capital is calculated by subtracting current liabilities from current assets. This represents the amount of funds that a company has available for daily operations, after taking into account its short-term obligations.

Net Working Capital Is