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