Final answer:
The statement is false. Net working capital is the difference between current assets and current liabilities.
Step-by-step explanation:
No, the statement is false. In accounting, current assets are the assets that can be easily converted into cash within a year, such as cash, accounts receivable, and inventory. Current liabilities, on the other hand, are the obligations that need to be paid within a year, such as accounts payable and short-term debt. Net working capital is the difference between current assets and current liabilities, indicating the amount of resources a company has to meet its short-term obligations. Therefore, current assets plus current liabilities equals net working capital, not the other way around.