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    Financial Accounting Study Set 11
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    Exam 3: Accrual Accounting Income
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    Net Working Capital
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Net Working Capital

Question 22

Question 22

Multiple Choice

Net working capital:


A) represents the company's ability to pay its long-term debts.
B) is computed by subtracting total current liabilities from total current assets.
C) should be a negative number to ensure the profitability of the company.
D) should be the same for all companies.

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