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Question

The sum total of all current assets is __________________.
  1. Gross working capital
  2. Working capital ratio
  3. Net working capital
  4. Quick ratio

A
Net working capital
B
Quick ratio
C
Gross working capital
D
Working capital ratio
Solution
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Gross working capital is the sum of all of a company's current assets (assets that are convertible to cash within a year or less). Gross working capital includes assets such as cash, accounts receivable, inventory, short-term investments, and marketable securities.

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