Which of the Following Describes Net Working Capital

question 123

Multiple Choice

Which of the following describes net working capital?

• A)current assets minus current liabilities
• B)current assets minus inventory
• C)current assets minus cash
• D)long -term minus current liabilities

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Definitions:

Common Stock

Equity ownership in a corporation, with rights to dividends and voting privileges in corporate matters.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to investors, which are reinvested into the business.

Revenues

The cumulative revenue produced from selling goods or services that are fundamental to a company's main activities.

Cash Dividend

Profits distributed by a company to its shareholders, usually as a form of payment.