The net current asset investment (NCAI) is defined as the change in current assets minus the change in sum of the accounts payable and accruals.

Question

Quizplus · Accepted Answer

NCAI is calculated as the change in current assets (such as inventory or accounts receivable) minus the change in current liabilities (such as accounts payable or accruals). This is because current assets represent resources tied up in the business, while current liabilities represent sources of financing for those resources. By subtracting the change in current liabilities from the change in current assets, we can determine the net investment in those resources.

The Net Current Asset Investment (NCAI) Is Defined as the Change