Question

Current ratio of a concern is 1 its net working capital will be

Answer 1

Answer:

concern is 1 its net working capital will be

Answer 2

If the current ratio of a concern is one its net working capital will be nil.

• The current ratio accurately represents the total number of current assets to current liabilities.

• It is expressed in the formula as = Total current assets/ Total current liability.

• Thus, if cr is one it typically signifies - Total current assets = Total current liabilities, which further implies  that the working capital will efficiently be nil as both are equal.