Q79
Net working capital refers to.
A.
total assets minus fixed assets
B.
current assets minus current liabilities
AnswerC.
current assets minus inventories
D.
current assets.
Answer: Option B
Solution
Answer: Option B
Solution:
Net working capital refers to current assets minus current liabilities. 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.