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WAEC Commerce 2007 Question 18

Question 18

Business Finance

The money used by Njie & Co. Ltd in running the day-to-day activities of the business is represented by

  1. A.total assets less total liabilities
  2. B.total assets less current liabilities
  3. C.current assets less stock
  4. D.current assets less current liabilities.
Show the answer and explanation

Answer: D (current assets less current liabilities.)

Explanation

Working capital = current assets − current liabilities.