____________ Refers to the Difference Between a fiRm's Current Assets

question 159

Multiple Choice

____________ refers to the difference between a firm's current assets and its current liabilities.

• A) Operating cash flow
• B) Capital spending
• C) Net working capital
• D) Cash flow from assets
• E) Cash flow to creditors

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Definitions:

Capital Stock

The total number of shares that a corporation is authorized to issue as stated in its corporate charter.

Assets

Economic resources controlled by a business from which future economic benefits are expected to flow to the business.

Liabilities

These are obligations a business owes to external parties, including loans, accounts payable, mortgages, and other debts.

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms for payment of premiums and the provisions of coverage.