Net working capital is calculated by taking the difference between:
A) total assets and total liabilities.
B) inventory and accounts payable.
C) current assets and current liabilities.
D) cash and accounts payable.

Question

Quizplus · Accepted Answer

Net working capital is the difference between a company's current assets and current liabilities. Essentially, it represents the amount of a company's short-term assets that are not currently tied up in paying off short-term liabilities. Options A, B, and D may be components of a company's working capital calculation but do not encompass the full calculation.

Net Working Capital Is Calculated by Taking the Difference Between