Net Working Capital Is Defined As

question 55

Multiple Choice

Net working capital is defined as:

• A)total liabilities minus shareholders' equity.
• B)current liabilities minus shareholders' equity.
• C)non-current assets minus non-current liabilities.
• D)total assets minus total liabilities.
• E)current assets minus current liabilities.

---

Definitions:

Amortization Schedule

An Amortization Schedule is a table detailing each periodic payment on an amortizing loan, showing amounts paid to principal and interest.

Interest on Unpaid Balance

Interest charged on the portion of a loan or credit card balance that has not been paid off within the agreed period.

Equal Monthly Payments

Regular payments of the same amount made over a set period to repay a loan or mortgage.

Compounded Monthly

Compounded Monthly implies that interest is added to the principal sum of a deposit or loan each month and interest in the following month is then earned on the new principal sum.