Which of the Following Is the Definition of Net Working

question 57

Multiple Choice

Which of the following is the definition of net working capital?

• A) Total assets - total liabilities
• B) Current assets - current liabilities
• C) Current assets / current liabilities
• D) Total assets / total liabilities

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Definitions:

Cost-volume-profit Analysis

A financial accounting technique that calculates how variations in costs and sales volume impact a firm's profitability.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion with the level of business activity or production volume, such as raw materials and direct labor costs.

Target Income

The desired profit level that a company aims to achieve within a specific period, often used in budgeting and financial planning.