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0 votes
18.6k views
in Business Studies by (180 points)
edited by

Current ratio of a concern is 1,its net working capital will be

a) Positive

b) Negative

c) Nil

d) None of the above

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1 Answer

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by (26.9k points)

(c) Nil

Current ratio = Current asset/Current liability, if its 1 that means Current  Asset = Current liability

While net working capital = (receivable + inventory + cash - payable).

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