Multiple Choice
A small company has current assets of $112,000 and current liabilities of $117,000. Which of the following statements about that company are most likely to be true?
A) Since net working capital is high, the company will likely have little difficulty meeting its obligations.
B) Since net working capital is nearly zero, the company is well run and will have little difficulty attracting investors.
C) Since net working capital is negative, the company will not have enough funds to meet its obligations.
D) Since net working capital is very high, the company will have ample money to invest after it meets its obligations.
Correct Answer:

Verified
Correct Answer:
Verified
Q39: The managements of public companies are not
Q40: Use the table for the question(s)
Q41: <span class="ql-formula" data-value="\begin{array} { l }
Q42: What is the main reason that it
Q43: Which of the following is the main
Q44: A delivery company is creating a balance
Q45: What is the role of an auditor
Q49: A manufacturer of plastic bottles for the
Q50: Use of the A-IFRS and auditors has
Q65: Price-earnings ratios tend to be high for