Net working capital is defined as:
A)current assets minus current liabilities.
B)working capital minus short-term debt.
C)current assets plus current liabilities.
D)All of the above

Question

Quizplus · Accepted Answer

Net working capital is simply the difference between current assets and current liabilities. Option A represents this accurately. Option B is incorrect, as it subtracts short-term debt from working capital instead of current liabilities. Option C is also incorrect, as it adds current liabilities to current assets instead of subtracting. Therefore, the correct answer is A - current assets minus current liabilities.

Net Working Capital Is Defined As