How Is the Net Working Capital Calculated

question 67

Multiple Choice

How is the net working capital calculated?

• A) Net working capital = total liabilities minus retained earnings
• B) Net working capital = total assets minus current assets
• C) Net working capital = total liabilities minus current liabilities
• D) Net working capital = current assets minus current liabilities
• E) Net working capital = total equity minus retained earnings

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Definitions:

Charles Darwin

was an English naturalist, geologist, and biologist, best known for his contributions to the science of evolution and for his proposition of natural selection as a mechanism for evolution.

Naturalist

An individual who studies or has expertise in the field of natural history, focusing on the study of the natural world.

Beetles

Insects belonging to the order Coleoptera, characterized by their hard exoskeleton and forewings, known as elytra, that cover the flying wings.

SS Beagle

The ship on which Charles Darwin sailed during his voyage that contributed to the development of the theory of evolution.