Derry's business has non-current assets of £76 000 and total assets of £121 000.Current liabilities are £25 000 and there are no long-term liabilities.Capital is £96 000.Which one of the following statements is incorrect?
A)Current assets less current liabilities = £20 000
B)Current assets are less than capital by £51 000
C)Non-current assets are less than capital by £20 000
D)Non-current assets are greater than current assets by £56 000

Question

Quizplus · Accepted Answer

Non-current assets (£76,000) minus current assets (total assets of £121,000 minus current liabilities of £25,000) equals £56,000, which means that non-current assets are greater than current assets by £56,000. Therefore, statement D is correct and not incorrect.

Derry's Business Has Non-Current Assets of £76 000 and Total