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Which of the following is the best method for computing working capital

Commerce
JAMB 2016

Which of the following is the best method for computing working capital

  • A. Total assets less current liabilities
  • B. Current liabilities less current assets
  • C. Fixed liabilities less current assets
  • D. Current assets less current liabilities
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Correct Answer: Option A
Explanation

The net working capital formula is calculated by subtracting the current liabilities from the current assets.

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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