If non-current assets are £250,000,current assets £70,000,long-term borrowing £50,000 and current liabilities £10,000 ,what is the value of owner's equity?
A) £240,000
B) £260,000
C) £120,000
D) £270,000

Question

Quizplus · Accepted Answer

The formula for calculating owner's equity is Assets - Liabilities. 
Non-current assets (£250,000) + current assets (£70,000) = £320,000 
Long-term borrowing (£50,000) + current liabilities (£10,000) = £60,000 
Owner's equity = Assets - Liabilities = £320,000 - £60,000 = £260,000. Therefore, the answer is choice B.

If Non-Current Assets Are £250,000,current Assets £70,000,long-Term Borrowing £50,000 and Current