Asked by Manal Al-Hashmi on Jun 11, 2024
Verified
The difference between current assets and liabilities is defined as:
A) net assets.
B) current funds.
C) net working capital.
D) None of the above
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within a year or within the business's operating cycle, whichever is longer.
Net Working Capital
The gap between a firm's current assets and its current liabilities, showcasing its operational effectiveness and short-term financial stability.
Current Liabilities
Obligations that a company needs to pay within a year.
- Understand the concept of net working capital and its significance to a firm’s financial health.
Verified Answer
Learning Objectives
- Understand the concept of net working capital and its significance to a firm’s financial health.
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