Choose ONE word/term for each of the following descriptions from the list below - NSC Accounting - Question 5 - 2017 - Paper 1
Question 5
Choose ONE word/term for each of the following descriptions from the list below. Write only the word/term next to the question number (5.1.1–5.1.4) in the ANSWER BOO... show full transcript
Worked Solution & Example Answer:Choose ONE word/term for each of the following descriptions from the list below - NSC Accounting - Question 5 - 2017 - Paper 1
Step 1
5.1.1 The ability of the business to pay off its short term debts in the next financial year
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Answer
Liquidity
Step 2
5.1.2 The extent to which the company is financed by borrowed capital (loans)
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Answer
Gearing
Step 3
5.1.3 The difference between current assets and current liabilities
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Answer
Net working capital
Step 4
5.1.4 Shareholders will not be required to use their personal possessions to settle the debts of the company
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