Accounting · Ratio Analysis
Bank overdraft can be calculated as the difference between which of the following variables, assuming it is the only non-liquid item among current liabilities?
- 1Current Assets - Stock and Prepaid Expenses
- 2Current Assets - Stock
- 3Current Liabilities - Liquid Liabilities✓
- 4Current Liabilities + Liquid Liabilities
Correct answer
Current Liabilities - Liquid Liabilities
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