Farook Limited has current assets of £68,420, current liabilities of £50,328, non-current liabilities of £102,000 and equity of £202,359. Using the accounting equation, calculate the figure for non-current assets.
A) £18,389
B) £118,451
C) £286,267
D) £423,107

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Equity. Current assets are £68,420, current liabilities are £50,328, non-current liabilities are £102,000, and equity is £202,359. Total liabilities and equity are £50,328 + £102,000 + £202,359 = £354,687. Therefore, total assets (current + non-current) must also be £354,687. Since current assets are £68,420, non-current assets are £354,687 - £68,420 = £286,267.

Farook Limited Has Current Assets of £68,420, Current Liabilities of £50,328