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WAEC Commerce 1997 Question 81

Question 81

Business Calculations

From the following figures in the accounting books of XY company, calculate its working capital: stock N2,000; Cash N1,500; Creditors N1,000; Bank overdraft N1,400.

  1. A.N5,900
  2. B.N1,900
  3. C.N1,100
  4. D.N900
  5. E.N100
Show the answer and explanation

Answer: C (N1,100)

Explanation

Current assets N2,000 + N1,500 = N3,500; current liabilities N1,000 + N1,400 = N2,400; working capital = N1,100.