The major difference between the current ratio and net working capital is? a. Interpretation of the...

The major difference between the current ratio and net working capital is?

a.	Interpretation of the current ratio does not depend on the firm's industry.
b.	The current ratio is more stable throughout the year.
c.	They are calculated using different variables
d.	Interpretation of the current ratio does not depend on firm size.

Expert Solution

Answer:

d. Interpretation of the current ratio does not depend on firm size

Current ratio is defined as the Current assets divided by Current Liabilities whereas Net working capital is defined as the Current assets minus Current Liabilities

jeff jeffy answered 2 years ago

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