The larger the working capital,the better the ability to pay debts.

Name: The larger the working capital,the better the ability to pay debts.
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Question

Quizplus · Accepted Answer

Working capital is the difference between current assets and current liabilities, and it represents a company's ability to pay off its short-term debts. Therefore, a larger working capital means there are more current assets available to pay off current liabilities, which indicates a better ability to pay debts.

The Larger the Working Capital,the Better the Ability to Pay