Which of the Following Formulas Will Correctly Calculate Net Working

question 49

Multiple Choice

Which of the following formulas will correctly calculate Net Working Capital?

• A) Cash + Inventory + Receivables + Payables
• B) Cash + Inventory + Receivables - Payables
• C) Cash + Inventory - Receivables + Payables
• D) Cash - Inventory + Receivables + Payables

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Definitions:

Bailor

A person or entity that entrusts their property into the hands of another, called the bailee, under an agreement for a specific purpose.

Bailee

An individual or entity that is given temporary possession, but not ownership, of personal property by another person (the bailor) under a bailment agreement.

Accidental Damage

Accidental damage refers to harm that occurs unexpectedly and unintentionally, resulting in loss or injury not caused by deliberate actions.

Donative Intent

The intention to give a gift without expecting anything in return, a necessary component of the legal analysis of gift transactions.