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FINANCIAL MANAGEMENT — OCM STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceOCMFINANCIAL MANAGEMENT5 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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