Which One of the Following Statements Concerning Net Working Capital

question 85

Multiple Choice

Which one of the following statements concerning net working capital is correct?

• A) Net working capital is negative when current assets exceed current liabilities.
• B) Net working capital includes cash, accounts receivables, fixed assets, and accounts payable.
• C) Inventory is a part of net working capital.
• D) The change in net working capital is equal to the beginning net working capital minus the ending net working capital.
• E) Net working capital includes accounts from the statement of comprehensive income.

---

Definitions:

Good Listening Skills

The ability to actively understand information provided by the speaker, showing interest, and providing feedback.

Arguments

A series of statements or reasons made to persuade others that an action or idea is right or wrong.

Rational Support

Justification or backing based on reason, logic, or facts.

Critical Thinking

A disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information.