The excess of current assets over current liabilities is called . . . . . . . .
A. Net tangible worth
B. Networth
C. Gross working capital
D. Net working capital
Answer: Option C
This Question Belongs to Commerce >> Accounting
Join The Discussion
Comments (2)
Related Questions on Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Gross Working Capital → Total current assets only, not the difference.
Net Worth → Total assets minus total liabilities (overall equity).
Net Tangible Worth → Net worth excluding intangible assets like goodwill
The excess of current assets over current liabilities is specifically defined as net working capital. It serves as a key indicator of a company's short-term financial health and its ability to meet immediate obligations using its most liquid resources
Net working capital is right answer