Question 8
-
The candidates were required to calculate from given balances on the following:
(a) Working capital;
(b) Circulating capital;
(c) Capital owned;
(d) Fixed assets.
Observation
The few candidates that attempted this question did not perform well. The following should be noted:
(a) Working Capital = current asset – current liabilities
(b) Circulating capital is the same thing with current assets.
(c) Capital owned + owner equity.