passwella.
Menu

JAMB Commerce 2021 Question 13

Question 13

Business Calculations

Use the information below to answer questions 13 and 14.
A B C Balance Sheet as at 31/12/2004
Share capital ₦200,000 | Fixed assets ₦180,000
Reserves ₦100,000 | Investment ₦100,000
Long term liabilities ₦40,000 | Current assets ₦50,000
Current liabilities ₦30,000 | Fictitious assets ₦40,000
Total ₦370,000 | Total ₦370,000

The total sum for financing short term projects is

  1. A.₦30,000
  2. B.₦200,000
  3. C.₦70,000
  4. D.₦40,000
Show the answer and explanation

Answer: A (₦30,000)

Explanation

Short-term projects are financed with short-term funds, which here are the current liabilities of ₦30,000. Share capital (₦200,000) is long-term finance.