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Which one of these is a correct definition? Current assets are assets with short lives, such as inventory. Current liabilities are debts that must be

Which one of these is a correct definition?

  • Current assets are assets with short lives, such as inventory.
  • Current liabilities are debts that must be repaid in 18 months or less.
  • Tangible assets are fixed assets such as patents.
  • Long-term debt is defined as a residual claim on a firm's assets.
  • Net working capital equals current assets plus current liabilities.

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