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Eduncle posted an MCQ
October 16, 2019 • 15:49 pm 0 points
  • UGC NET
  • Commerce

Negative Net Working Capital implies that

Negative Net Working Capital implies that : (1) Long-term funds have been used for fixed assets. (2) Short-term funds have been used for fixed assets. (3) Long-term funds have been used for current assets. (4) Short-term funds have been used for current assets.

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    Eduncle Best Answer

    When Short-term funds have been used for fixed assets or Long term Fund  then Negative Working Capital Implies. It is aggressive approach of working capital.

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