📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    If the Current Assets are less than Current liabilities

    by 5000, what is the amount of Net Working Capital?
    A +5000 Correct Answer Incorrect Answer
    B -5000 Correct Answer Incorrect Answer
    C -2500 Correct Answer Incorrect Answer
    D +2500 Correct Answer Incorrect Answer
    E +10000 Correct Answer Incorrect Answer

    Solution

    Net Working Capital = Current Assets – Current Liabilities So if current assets are less than current liabilities by 5000, the difference will be the net working capital. As such, here is will be -5000 as current liabilities is greater than current assets.

    Practice Next
    More Alternate Sources of Finance Questions
    ask-question