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JAMB Commerce 2009 Question 30

Question 30

Business Finance

The circulating capital of a business enterprise is classified into

  1. A.cash, work-in-progress and debtors
  2. B.cash, vehicles, land and buildings
  3. C.debtors, stock of raw materials and fittings
  4. D.pre-payments, debtors and equipment.
Show the answer and explanation

Answer: A (cash, work-in-progress and debtors)

Explanation

Circulating (working) capital keeps changing form: cash, stock and work-in-progress, and debtors. Vehicles, buildings, fittings and equipment are fixed capital.