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The more refined measure, found by subtracting current liabilities, is:
ANoted working capital
BNet working capital
CNew working capital
DNamed working capital
Answer & Solution
Correct answer: B. Net working capital
1. The gross figure comes first.
2. Short-term debts are then taken off.
3. It is net working capital.
_Source: OpenStax Principles of Finance 2e, Chapter 19, The Importance of Working Capital._
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