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JAMB Accounting 2008 Objective — Question 46

Question 46 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2008 Objective paper, with the correct answer and a full explanation.

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Which of the following is true of Uju Nig. Ltd.?

  • A. It is a highly geared company
  • B. it has no liquidity problem in the short term
  • C. it is adequately secured in fixed assets
  • D. its working capital is zeroCorrect

Explanation

Working capital = current asset - current liabilities = N80,000-N80,000 = 0.

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