BUISENESS MANAGEMENT
RISK MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net Working Capital (NWC) can be calculated as?
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Total Current Assets-Total Current Liabilities
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Long Term Sources-Long Term uses
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(Net Worth + Term Liabilities)-(Total Assets-current assets)
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Any of the above
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Explanation:
Detailed explanation-1: -Net working capital = current assets (less cash) – current liabilities (less debt)
Detailed explanation-2: -What Is Working Capital? 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: -Net Working Capital Ratio-A firm’s current assets less its current liabilities divided by its total assets.
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