5 PTS Working capital is calculated as:(a) Total assets minus total liabilities(b) Current assets minus current liabilities(c) Fixed assets minus current liabilities(d) Total equity minus long-term debt.

Concept of Total Assets Minus Total LiabilitiesThis calculation represents a company's net worth or…

Answered: Working capital is calculated as: (a)…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 3TF

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Net working capital is defined as:Select one:a. Fixed assets minus long-term liabilities.b. Current assets minus current liabilities.c. Total liabilities minus shareholders' equity.d. Current liabilities minus shareholders' equity.e. Total assets minus total liabilities.
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9.Working capital is calculated as: Select one: Current assets plus current liabilities Current assets less current liabilities Assets less current liabilities Assets less liabilities
Which of the following formulas will correctly calculate Net Working Capital? A. Current assets + current liabilities B. Free cash flow + depreciation expenses C. Incremental earnings – capital purchases D. Current assets – current liabilities
Net working capital is defined as (select one): A. current assets minus current liabilities. B. a ratio measure of liquidity best used in cross-sectional analysis. C. current liabilities minus current assets. D. the portion of the firm's assets financed with short-term funds.
The monetary value of the net assets is reported at its historical cost on the balance sheet? a. physical capital b. excess capital c. net capital d. financial capital
Explain how the financing of working capital can be arranged in terms of short and long term sources of finance. In particular, make reference to: i) The financing of working capital or net current assets when short term sources of finance are exhausted ii) The distinction between fluctuating and permanent current assets.
You can include Fixed Assets in the Net Working Capital formula. T/F
Using the following account balances, calculate: A. working capital B. current ratio
Working capital is an indication of the firms ________. A. asset utilization B. amount of noncurrent liabilities C. liquidity D. amount of noncurrent assets
Which of the following is the correct formula for calculating rate of return on total assets? A. (Net income minus− Interest expense) / Average total asset B. Total equity / Total assets C. (Net income + Interest expense) / Average total assets D. (Net income minus− Interest expense) / Total assets

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Working capital is calculated as: (a) Total assets minus total liabilities (b) Current assets minus current liabilities (c) Fixed assets minus current liabilities (d) Total equity minus long-term debt.