If a company has total assets of £98000, equity of £32000, long term liabilities of £18000 what are its current liabilities?
A) £64000
B) £80000
C) £48000
D) £98000

Question

Quizplus · Accepted Answer

Total liabilities = equity + long term liabilities
Total liabilities = £32000 + £18000 = £50000
Current liabilities = Total liabilities - Total assets
Current liabilities = £50000 - £98000 = £48000

If a Company Has Total Assets of £98000, Equity of £32000