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      Question

      If the Current Assets are less than Current liabilities

      by 5000, what is the amount of Net Working Capital?
      A +5000 Correct Answer Incorrect Answer
      B -5000 Correct Answer Incorrect Answer
      C -2500 Correct Answer Incorrect Answer
      D +2500 Correct Answer Incorrect Answer
      E +10000 Correct Answer Incorrect Answer

      Solution

      Net Working Capital = Current Assets – Current Liabilities So if current assets are less than current liabilities by 5000, the difference will be the net working capital. As such, here is will be -5000 as current liabilities is greater than current assets.

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