Net Working Capital Is

question 9

Multiple Choice

Net working capital is

• A)current liabilities.
• B)current assets.
• C)current liabilities plus current assets.
• D)current assets minus current liabilities.
• E)current liabilities minus current assets.

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Definitions:

Cash Balance

Cash balance represents the amount of cash a company holds at any given point in time, accessible for its immediate needs.

General Ledger

A comprehensive record of all financial transactions occurring within a company, organized by account, used to compile financial statements.

Control Accounts

General ledger accounts that summarize the details of a subsidiary ledger, facilitating the consolidation and reporting process.

Enterprise Resource Planning

A type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, and manufacturing.