Multiple choice

Net working capital stands for

  1. fixed assets minus current assets

  2. fixed assets minus current liabilities

  3. current assets minus current liabilities

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Net working capital is defined as the difference between current assets and current liabilities. It represents the liquidity available for day-to-day operations.

Keep practicing — related questions