The ______________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities ?
Correct answer: C. Net working capital
- A. Cash ratio
- B. Current ratio
- C. Net working capital
- D. Liquids assets
Explanation
Net working capital measures the funds tied up in short-term operations and is calculated as current assets minus current liabilities. The current ratio, by contrast, is their quotient.
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