The Net Working Capital for a Company with Current Assets

question 20

Multiple Choice

The net working capital for a company with current assets of $70,000,quick assets of $30,000,total assets of $150,000,current liabilities of $50,000 and net sales of $80,000 would be:

• A)$100,000.
• B)$50,000.
• C)$30,000.
• D)$20,000.

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Definitions:

Opportunity Cost

The worth of the best alternative given up to make a choice.

Accounting Profit

The financial gain calculated by subtracting total expenses from total revenues, according to standard accounting principles.

Economic Profit

The profit from undertaking an activity after subtracting both the explicit and implicit costs associated with that activity.

Implicit Costs

Expenses that do not involve a direct monetary payment but represent the opportunity cost of using resources owned by the company or individual.