Net Working Capital Refers to Which of the Following

question 35

Multiple Choice

Net working capital refers to which of the following?

• A) Current assets
• B) Current assets minus current liabilities
• C) Current assets minus inventory
• D) Current assets divided by current liabilities

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Definitions:

Contractual Intent

The clear intention of the parties to a contract to create a legally binding agreement.

Definite

Clearly stated or decided; not vague or doubtful, often referring to terms or conditions that are explicitly specified.

Adequate Communication

Effective exchange of information, ensuring all involved parties fully understand terms, expectations, or instructions.

Reserve

Funds or resources set aside for specific future use or to cover unexpected liabilities, or the practice of conserving natural resources.