Accounting for IGCSE & O level - Final Statements (Section 7 - No. 50)

If a business has positive working capital, it means:

The business can easily pay its running expenses.

The business has more current liabilities than current assets.

The business has difficulty paying its short-term debts.

The business will have negative working capital.

Positive working capital means a business has sufficient current assets to cover its current liabilities.