Use the information below to answer questions Total current assets..................N2,000 Total fixed assets....................N4,000 Current liabilities...................N1,200 Drawings..............................N200 Long-term loan........................N2,000 Determine the capital of the business?
A. N9,400 B. N6,000 C. N3,400 D. N3,000
Correct Answer: D
Explanation
Capital = Assets - liabilities Assets = Fixed assets + current assets + drawings 2000 + 4000 + 200 = 6200 Liabilities = current liabilities + longterm loans 1200 + 2000 = 3200 6200 - 3200 = 3000 Â
