Net Working Capital Is

question 57

Multiple Choice

Net working capital is:

• A)cash minus current liabilities
• B)current assets minus current liabilities
• C)the ability to meet short-term financial commitments
• D)cash plus currents assets

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Definitions:

Managerial Accounting

The process of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the purpose of achieving organizational goals.

Management Accounting

The method of creating management reports and financial statements that offer precise and current financial and statistical data needed by managers for making daily and short-term choices.

Analytical Accounting

The practice of using financial and non-financial data to uncover trends and insights for business decision-making.

Planning

The process of making strategic decisions and setting objectives and goals for future organizational performance.