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which of the following is true of net working capital? when current assets of a firm exceed its current liabilities, a firm is said to have negative net working capital. when current assets of a firm exceed its current liabilities, a firm is said to have positive net working capital. when current assets of a firm exceed its total assets, the firm is said to have negative net working capital. when current assets of a firm are less than its total assets, a firm is said to have positive net working capital.

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Selling inventory at a profit is true of net working capital. A decrease in the cash balance also decreases net working capital.

If a company's current assets are greater than its current liabilities, does it have negative net working capital?

The current ratio, which is determined by dividing a company's current assets by its current liabilities, and negative working capital are strongly connected. When the current ratio is lower than 1, there are more current liabilities than current assets, which results in a decrease in working capital.

The difference between current assets and current liabilities on a company's balance sheet is referred to as net working (NWC). It serves as a gauge of a company's liquidity and capacity to pay short-term debts and fund ongoing operations.

Therefore, Net working capital is current assets minus current liabilities.

Learn more about net working capital from the given link.

https://brainly.com/question/21852402

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