Which of the Following Mathematical Expressions Is Used to Compute

question 96

Multiple Choice

Which of the following mathematical expressions is used to compute the net working capital of a firm?

• A)Net working capital = Total liabilities − Retained earnings
• B)Net working capital = Total assets − Current assets
• C)Net working capital = Total liabilities − Current liabilities
• D)Net working capital = Current assets − Current liabilities
• E)Net working capital = Total equity − Retained earnings

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