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Question

Net working capital is defined as?

A Total assets less current assets Correct Answer Incorrect Answer
B The excess of current assets over current liabilities Correct Answer Incorrect Answer
C Current liabilities less current assets Correct Answer Incorrect Answer
D Marketable securities and cash Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Net working capital of a firm depicts the difference between its current assets and current liabilities. Net working capital = Current assets – current liabilities

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