WAEC Accounting 2013 Paper

Concept:Excess of current assets over current liabilities is known as working capital.Explanation:Current assets include cash, debtors, inventory, and short-term investments.Current liabilities include creditors, short-term loans, and outstanding expenses.Working capital is calculated as:$$\text{Working Capital} = \text{Current Assets} - \text{Current Liabilities}$$If current assets exceed current liabilities, the surplus is positive working capital.Answer:C. working capital