Asked by Erika Johnson on May 10, 2024

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Net Working Capital:

A) r epresents the money required to support day-to-day activities.
B) is current assets minus current liabilities
C) is total assets minus total liabilities
D) ​Both A & B
E) ​Both A & C

Net Working Capital

Represents a measure of a firm's liquidity by calculating the excess of current assets over current liabilities, portraying the company's operational efficiency.

Current Assets

Assets owned by a company that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle.

Current Liabilities

Short-term financial obligations that are due within one year, typically including accounts payable, short-term loans, and other debts.

  • Comprehend the representation of a corporation's financial well-being through its financial statements, including aspects such as equity, net income, and net working capital.
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NK
nyaboga kiageMay 11, 2024
Final Answer :
D
Explanation :
Net working capital is defined as current assets minus current liabilities, which represents the money required to support day-to-day operational activities.