Which of the following expresses the accounting equation?
Capital + assets = liabilities
Assets - liabilities = Capital
Liabilities + Current Assets = Fixed assets
Liabilities - Capital = Current assets
Correct answer is B
The net working capital formula is calculated by subtracting the current liabilities from the current assets. Here is what the basic equation looks like. Typical current assets that are included in the net working capital calculation are cash, accounts receivable, inventory, and short-term investments.