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:

Ambiguous

Something that can be understood in more than one way; not clear or decided.

Media Richness

The ability of a communication medium to effectively convey complex information and promote understanding.

Routine Situations

Circumstances or tasks that occur regularly and can be handled through established procedures without much deviation.

Omitting

Intentionally or unintentionally leaving out or excluding information, actions, or elements, which can have various implications depending on context.