Evan's business has non-current assets of £62 000, current assets of £17 000, current liabilities of £10 000 and a long-term liability of £20 000.What is Evan's capital?
A)£69 000
B)£49 000
C)£7000
D)£30 000

Question

Quizplus · Accepted Answer

Capital = Non-current assets - Long-term liability 
Capital = £62 000 - £20 000 
Capital = £42 000

Then, we need to add the current assets and subtract the current liabilities:

Capital = £42 000 + £17 000 - £10 000 
Capital = £49 000

Therefore, the answer is choice B: £49 000.

Evan's Business Has Non-Current Assets of £62 000, Current Assets