Net working capital provides a very useful summary measure of a firm's short-term financing decisions.

Name: Net working capital provides a very useful summary measure of a firm's short-term financing decisions.
Brand: Quizplus
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Quizplus · Accepted Answer

Net working capital is calculated by subtracting a company's current liabilities from its current assets. It provides information about a company's ability to meet its short-term financial obligations. Therefore, it can be a useful summary measure of a firm's short-term financing decisions.

Net Working Capital Provides a Very Useful Summary Measure of a Firm's