Accounting JAMB

What is the net working capital?

Use the information below to answer questions

Total current assets………………N2,000
Total fixed assets………………..N4,000
Current liabilities……………….N1,200
Drawings…………………………N200
Long-term loan……………………N2,000

 

A. N2,600
B. N1,800
C. N800
D. N600

Correct Answer:

Option C – N800

Explanation

Working capital = current assets – current liabilities

2000 – 1200 = 800

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