Your venture has total assets of $690, net fixed assets of $500, long term debt of $80, and stockholders' equity of $400. What is the amount of your venture's current liabilities?
A)-$120
B)$100
C)$210
D)$290

Question

Quizplus · Accepted Answer

Total assets = Net fixed assets + Current assets
Current assets = Total assets - Net fixed assets
Current assets = $690 - $500 = $190

Total liabilities = Long term debt + Current liabilities
Stockholders' equity = Total assets - Total liabilities

Thus,

Total liabilities = $80 + Current liabilities
$400 = $690 - $80 - Current liabilities
Current liabilities = $210

Your Venture Has Total Assets of $690, Net Fixed Assets