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

Which of the following is the best method for computing working capital
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Total assets less current liabilities
  • B Current liabilities less current assets
  • C Fixed liabilities less current assets
  • D Current assets less current liabilities
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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