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WAEC Financial Accounting 2000 Question 5

Question 5

Interpretation of Accounts

The excess of current assets over current liabilities is

  1. A.authorised share capital
  2. B.working capital
  3. C.loan capital
  4. D.called-up capital.
Show the answer and explanation

Answer: B (working capital)

Explanation

Working capital = current assets − current liabilities.