If current assets are $15,200, current liabilities are $3,100, non-current liabilities are $45,000 and equity is $70,000, non-current assets are:
A)$108,100
B)$48,100
C)$92,900
D)$102,900

Question

Quizplus · Accepted Answer

Non-current assets can be calculated using the accounting equation: Assets = Liabilities + Equity. Total assets = Current assets + Non-current assets. Rearranging gives Non-current assets = Total assets - Current assets. Total liabilities = Current liabilities + Non-current liabilities = $3,100 + $45,000 = $48,100. Total assets = Total liabilities + Equity = $48,100 + $70,000 = $118,100. Non-current assets = $118,100 - $15,200 = $102,900.

If Current Assets Are $15,200, Current Liabilities Are $3,100, Non-Current