Net Working Capital, Defined as Current Assets Minus the Sum

question 119

True/False

Net working capital, defined as current assets minus the sum of payables and accruals, is equal to the current ratio minus the quick ratio.

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Definitions:

Simplify

To reduce a mathematical expression to its most basic form, making it easier to work with.

Multiply

To increase a number by a specified factor, or the operation of adding a number to itself a certain number of times.

Simplify

To alter an expression to make it easier to understand or work with, often by combining like terms or applying mathematical operations.

Multiply

The process of calculating the total of one number added to itself a specified number of times.