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JAMB Commerce 2001 Question 12

Question 12

Business Finance

The difference between total current assets and total current liabilities of a business is known as

  1. A.quick ratio
  2. B.liquidity ratio
  3. C.working capital
  4. D.circulating capital.
Show the answer and explanation

Answer: C (working capital)

Explanation

Working capital = current assets − current liabilities.