Question

A firm has assets of 1,00,000 and the external liabilities of   60,000. Its capital would be

A 1,60,000 Correct Answer Incorrect Answer
B 60,000 Correct Answer Incorrect Answer
C 1,00,000 Correct Answer Incorrect Answer
D 40,000 Correct Answer Incorrect Answer

Solution

Capital = Total Assets - Total Liabilities Capital = 1,00,000 - 60,000 Capital = 40,000 Therefore, the capital of the firm is 40,000.

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