Which one of these accounts is included in net working capital?
A)Copyright
B)Manufacturing equipment
C)Common stock
D)Long-term debt
E)Inventory

Question

Quizplus · Accepted Answer

Net working capital refers to the difference between current assets (assets that will be converted into cash within one year) and current liabilities (obligations that must be paid within one year). Inventory is a current asset, making it included in net working capital. Copyright, manufacturing equipment, common stock, and long-term debt are not current assets or liabilities and therefore not included in net working capital.

Which One of These Accounts Is Included in Net Working