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Which of the Following Is TRUE of Net Working Capital

Question 2

Multiple Choice

Which of the following is TRUE of net working capital?


A) When current assets of a firm exceed its current liabilities,a firm is said to have negative net working capital.
B) When current assets of a firm are less than its total assets,a firm is said to have positive net working capital.
C) When current assets of a firm exceed its current liabilities,a firm is said to have positive net working capital.
D) When current assets of a firm exceed its total assets,the firm is said to have negative net working capital.

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