Net Working Capital Is Defined as Current Assets Minus Current

question 174

True/False

Net working capital is defined as current assets minus current liabilities.This also defines the current ratio.

---

Definitions:

Adjusting Screw

A type of screw used to make precise adjustments to the position, tension, or pressure of components in various mechanisms.

Duo-servo Type Brake

A brake system design where the brake shoes both push against each other and the drum, increasing braking force through a self-energizing effect.

Shoe

A type of footwear designed to protect and comfort the human foot.

Hand-operated Parking Brake

A manually controlled system that locks the brakes to prevent a vehicle from rolling when parked.