Q240
In which of the following condition, a company will have positive working capital?
A.
If current assets>current liabilities
AnswerB.
If current assets
C.
If current assets = current liabilities
D.
None of the above
Answer: Option A
Solution
Answer: Option A
Solution:
If current assets>current liabilities, a company will have positive working capital. When a company has more current assets than current liabilities, it has positive working capital.