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WAEC Commerce 2004 Question 11

Question 11

Business Calculations

The working capital of a firm is calculated as

  1. A.current assets minus current liabilities
  2. B.current liabilities minus fixed assets
  3. C.value of all assets
  4. D.value of issued capital
Show the answer and explanation

Answer: A (current assets minus current liabilities)

Explanation

Working capital = current assets − current liabilities.