Current assets - Current liabilities=?
Correct answer: D. Net working capital
- A. Capital
- B. Absorbed capital
- C. Net assets
- D. Net working capital
Explanation
Net working capital measures the short-term financial cushion available for operations. It is calculated as current assets minus current liabilities.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
Practise Financial Statements
128 free Financial Statements MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Financial Statements questions
Closing stock is generally valued at______________?
Which of the following assets is/are to be valued at the lower of cost and net realizable value?
Which of the following methods is not a practical way of realizing revenue?
An increase in provision for bad debt will____________?
Depreciation decreases____________?
Which of the following is the practical implementation of the accounting equation?