Question

The term "net working capital" refers to

a) inventories, receivables, and current notes and investments
b) assets divided by liabilities
c) current assets less short-term liabilities
d) net assets left over after subtracting cost of goods sold

Answer 1

Net working capital is calculated by subtracting short-term liabilities from current assets and represents the resources available to a business for daily operations.

Step-by-step explanation:

The term "net working capital" refers to the calculation of current assets minus short-term liabilities. It represents the amount of resources available to a business to meet its day-to-day operations. Net working capital includes inventories, receivables, and current notes and investments.