Net Working Capital Is Defined As

question 56

Multiple Choice

Net working capital is defined as:

• A) The current assets in a business
• B) The difference between current assets and current liabilities
• C) The present value of all short-term cash flows
• D) The difference between all assets and liabilities

---

Definitions:

Semiannually

Happening semiannually; every six months.

360-Day Year

An accounting concept that simplifies interest calculations by using thirty-day months across a full year.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, typically a percentage of the sale.

360-Day Year

An accounting convention that uses 360 days in a year for calculating interest on loans and other financial instruments.