Question

    What will be the net working capital if Current ratio of

    a concern is greater than 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 greater than 1, it means that current assets are more than the current liabilities. Therefore, the difference between current assets and current liabilities, which is the net working capital, would be a positive number.

    Practice Next
    More Financial Management Questions