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      Question

      A company with higher current assets than current

      liabilities is said to have:
      A Negative working capital Correct Answer Incorrect Answer
      B No working capital Correct Answer Incorrect Answer
      C Positive working capital Correct Answer Incorrect Answer
      D Zero working capital Correct Answer Incorrect Answer

      Solution

      Explanation: Positive working capital indicates that the company can cover its short-term liabilities with its short-term assets.

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