Net Working Capital Is Defined As

question 47

Multiple Choice

Net working capital is defined as:

• A)the depreciated book value of a firm's fixed assets.
• B)the value of a firm's current assets.
• C)available cash minus current liabilities.
• D)total assets minus total liabilities.
• E)current assets minus current liabilities.

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Definitions:

Future Costs

Expected or projected expenses that will be incurred in the future.

Cost-Volume-Profit Analysis

A management accounting method used to analyze how changes in costs and sales volume affect a company's profit.

Expected Income

This is the amount of revenue or profit an individual or business anticipates earning over a specific period, often used for budgeting and planning purposes.

Fixed Cost

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of business activity levels.