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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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