Which of the following would be included in the calculation of net operating working capital?
A)Accounts payable?
B)Accruals
C)Short-term notes payable
D)Both A and B

Question

Quizplus · Accepted Answer

Net operating working capital includes accounts payable and accruals because both are short-term liabilities that a company needs to pay off within a year. Short-term notes payable are also a short-term liability but are typically not included in the calculation of net operating working capital because they are considered financing activities rather than operating activities.

Which of the Following Would Be Included in the Calculation