Accounting for IGCSE & O level - Final Statements (Section 12 - No. 42)
If a company has a positive working capital, what does that imply?
It has more current liabilities than current assets.
It has more current assets than current liabilities.
The company is making a loss.
The company has negative equity.
Shpjegimi
Positive working capital means that a company has more current assets than current liabilities, indicating its ability to meet its short-term obligations.