What Is the Amount of Net Working Capital

question 102

Multiple Choice

What is the amount of net working capital?

• A) $0
• B) $100
• C) $200
• D) $300
• E) $400

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Definitions:

Accounts Payable

Liabilities owed by a business to creditors for purchases of goods and services on credit.

Merchandise Inventory

The goods a company has in stock that are ready to be sold as part of its regular business operations.

Accounts Payable

Money that a company owes to its suppliers or vendors for goods and services received but not yet paid for.

Merchandise Inventory

The total cost of all goods that a company has in stock and available for sale, at any given time.