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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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