Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering

The net working capital of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

Option A: Cash ratio. The cash ratio is a financial metric that compares a company's cash and cash equivalents to its current liabilities.

Option B: Net working capital. This is the correct answer as it represents the difference between current assets and current liabilities, indicating the liquidity available to a company.

Option C: Current ratio. The current ratio is another financial metric that compares a company's current assets to its current liabilities, providing an indication of the company's ability to cover its short-term liabilities with its short-term assets.

Option D: Liquid assets. While similar to net working capital, liquid assets typically refer to assets that can be easily converted into cash without significant loss of value, whereas net working capital specifically considers the difference between current assets and current liabilities.

Therefore, the correct answer is Option B: Net working capital.