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Management · Q105

Financial Management

Graduate and Post Graduate · Management · question 105

Q105

Which of the following statement are true in respect of working capital?

A.
Gross Working Capital is the sum of the total current assets
B.
Net working capital represents current assets - current liablities
C.
Net working capital can be negative
D.
All the above
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Gross Working Capital is the sum of the total current assets, Net working capital represents current assets - current liablities and Net working capital can be negative of the following statement are true in respect of working capital.