MANAGEMENT

BUISENESS MANAGEMENT

RISK MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Net Working Capital (NWC) can be calculated as?
A
Total Current Assets-Total Current Liabilities
B
Long Term Sources-Long Term uses
C
(Net Worth + Term Liabilities)-(Total Assets-current assets)
D
Any of the above
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.

There is 1 question to complete.