Gujarat BoardEnglish MediumSTD 12 CommerceOCMFINANCIAL MANAGEMENT3 Marks
Question
Explain: Net working capital.
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Answer
Net working capital:
Net working capital means current assets minus current liabilities.Therefore, Net working capital $=$ Current assets $–$ Current liabilities
If current assets $ > $ current liabilities, it is called positive working capital.
If current assets $ < $ current liabilities, it is called negative working capital.
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