Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Calculate the current assets if working capital is ₹45000, total debt=₹100000, and long-term debt = ₹70000.

Options:

₹60000

₹75000

₹90000

₹85000

Correct Answer:

₹75000

Explanation:

Current liabilities = total debt - long-term debt
                         = 100000 - 70000
                         = ₹30000
Current assets = working capital + current liabilities
                      = 45000 + 30000
                       = ₹75000