Net working capital is best defined as
A)excess cash on hand.
B)a firm's current assets.
C)current assets minus current liabilities.
D)total assets minus total liabilities.
E)cash and near-cash assets.

Question

Quizplus · Accepted Answer

Net working capital is calculated by subtracting a firm's current liabilities from its current assets. This represents the amount of funds that the company has available to meet its short-term financial obligations. It does not include excess cash or long-term assets and liabilities.

Net Working Capital Is Best Defined as