"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 represents the amount of current assets a firm has to fund on its own, after subtracting the current liabilities that are funded by others. This amount can be used to finance a firm's operations, investments or other activities. Excess capacity refers to the unused resources or capacity that a firm possesses, whereas safety stock is the inventory held to guard against unforeseen fluctuations in demand or supply. Unfunded assets is not a commonly used financial term.

"The Net Amount of Current Assets That the Firm Has