Question on: JAMB Commerce - 2024


Which of these is used in calculating working capital?

A
furniture and fittings
B
stock of raw material
C
machinery
D
office equipment
Ask EduPadi AI for a detailed answer
Correct Option: B

Working capital is calculated using current assets and current liabilities. Current assets are items that a company expects to convert to cash within one year. Stock of raw materials is a current asset, whereas furniture, machinery, and office equipment are fixed assets.

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