Accounting Multiple Choice Question – 5 March 2022

A company had the following assets and liabilities at 31 December 2021.

• trade receivables – £29,000
• trade payables – £12,600
• short-term bank deposit – £8,800
• bank loan repayable on 1 May 2022 – £20,000
• bank loan interest unpaid – £500
• machinery – £19,400

What was the working capital?

Select ONE answer:

1. £4,700
2. £6,200
3. £15,100
4. £25,700

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct ==> £29,000 +£8,800 – £12,600 – £20,000 – £500
2. Not correct
3. Not correct
4. Not correct

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