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WAEC Commerce 2023 Question 11

Question 11

Business Finance

The excess value of total assets over total liabilities is

  1. A.working capital
  2. B.paid-up capital.
  3. C.capital owned.
  4. D.borrowed capital.
Show the answer and explanation

Answer: C (capital owned.)

Explanation

What is left of the assets after paying all liabilities belongs to the owner: capital owned (net worth). Working capital is current assets minus current liabilities.