Economics · Working Capital Management
Given below are two statements: Statement I: Positive working capital indicates the amount of short-term funds used in financing long-term assets. Statement II: Negative working capital indicates the amount of long-term funds used in financing short-term assets. In light of the above statements, choose the correct answer:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement I is incorrect but Statement II is correct.
- 2Statement I is correct but Statement II is incorrect.
- 3Both Statement I and Statement II are incorrect.✓
- 4Both Statement I and Statement II are correct.
Correct answer
Both Statement I and Statement II are incorrect.
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