O-LevelAccountingAnalysis and interpretation7707/11 · May/June 2016 · Q141 Mark

How is working capital calculated?

Acurrent assets – current liabilities

Bcurrent assets – total liabilities

Cnon-current assets – current liabilities

Dnon-current assets – total liabilities

✓ Correct answer

A: current assets – current liabilities

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Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2016 Paper 1 Variant 1, question 14.

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