Net Working Capital

question 22

Multiple Choice

Net working capital:

• A)represents the company's ability to pay its long-term debts.
• B)is computed by subtracting total current liabilities from total current assets.
• C)should be a negative number to ensure the profitability of the company.
• D)should be the same for all companies.

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Definitions:

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Mileage Deduction

A tax deduction that allows taxpayers to deduct vehicle expenses for business, medical, moving or charitable reasons, based on miles driven.

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