Company A has total current liabilities equal to $500,000,and working capital of $20,000.Company B has the same amount of working capital,but it has total current liabilities of $30,000.The company with the better working capital position is:
A) They both have exactly the same working capital position.
B) Company A
C) Company B
D) no comparison is possible

Question

Quizplus · Accepted Answer

Company B has a better working capital position because it has the same working capital amount ($20,000) but significantly lower current liabilities ($30,000) compared to Company A's current liabilities ($500,000). This indicates that Company B has more current assets relative to its liabilities, suggesting a stronger liquidity position.

Company a Has Total Current Liabilities Equal to $500,000,and Working