passwella.
Menu

WAEC Financial Accounting 1995 Question 15

Question 15

Interpretation of Accounts

Working capital is measured by the excess of

  1. A.current liabilities over current assets.
  2. B.fixed assets over current assets
  3. C.current assets over current liabilities
  4. D.current assets over fixed assets
  5. E.long term liabilities over fixed assets.
Show the answer and explanation

Answer: C (current assets over current liabilities)

Explanation

Working capital = current assets − current liabilities.