It is false that when current assets exceed current liabilities, a firm has negative net working capital.
Current assets of a company refers to the money receivable by the company within one year by means of standard business operations. Whereas current liabilities refers to the obligations of the company to be paid with the help of the current assets.
Net working capital is the difference in current assets and current liabilities of a company. So the current assets and current liabilities should be properly managed to make a company profitable.
That is, when the current assets of a company exceeds its current liabilities, the firm has a positive net working capital. Also when the current assets of the firm is less than its current liabilities, it will show a negative net working capital.
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