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1 year ago

net working capi tal is defined as current liabilities minus current assets. group of answer choices true false

Business

1 answer:

VLD [36.1K]1 year ago

5 0

Net working capital is defined as current liabilities minus current assets.

This statement is False.

What is meant by net working capital?

Working Capital = Current Assets - Current Liabilities

Current Assets

Current assets are the economic benefits that the company expects to receive within the next 12 months. The company has the right to receive the financial benefit, and calculating working capital.

Current Liabilities

Current liabilities are simply all debts a company owes or will owe within the next twelve months.

To learn more about net working capital, refer to:

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