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    Question

    What will be the net working capital if Current ratio of

    a concern is 1?
    A Positive Correct Answer Incorrect Answer
    B Negative Correct Answer Incorrect Answer
    C Nil Correct Answer Incorrect Answer
    D Neutral Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    When the current ratio is 1, it means that current assets and current liabilities are equal. Therefore, the difference between current assets and current liabilities, which is the net working capital, would be nil.

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