BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Total current Assets
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Current Asset + Current Liabilities
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Current Assets-Current Liabilities
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Current Liabilities-Current Assets
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Detailed explanation-1: -Net working capital is defined as the difference between a company’s current assets and its current liabilities on its balance sheet. Used to measure the short-term liquidity of a business, it is calculated using line items from a business’s balance sheet.
Detailed explanation-2: -Working capital, also known as net working capital (NWC), is the difference between a company’s current assets-such as cash, accounts receivable/customers’ unpaid bills, and inventories of raw materials and finished goods-and its current liabilities, such as accounts payable and debts.
Detailed explanation-3: -Simply put, Net Working Capital (NWC) is the difference between a company’s current assets and current liabilities on its balance sheet. It is a measure of a company’s liquidity and its ability to meet short-term obligations, as well as fund operations of the business.
Detailed explanation-4: -Net working capital refers to a total assets minus fixed assets.
Detailed explanation-5: -Net current assets is also known as working capital.