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WAEC Financial Accounting 1993 Question 42

Question 42

Interpretation of Accounts

The excess of current assets over current liabilities is

  1. A.Authorised capital
  2. B.Nominal capital
  3. C.Issued capital
  4. D.Owners capital
  5. E.Working capital.
Show the answer and explanation

Answer: E (Working capital.)

Explanation

Working capital = current assets − current liabilities.