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WAEC Financial Accounting 2013 Question 48

Question 48

Interpretation of Accounts

Excess of current assets over current liabilities is

  1. A.deferred capital.
  2. B.nominal capital.
  3. C.working capital.
  4. D.authorized capital.
Show the answer and explanation

Answer: C (working capital.)

Explanation

Working capital = current assets − current liabilities.