Question :
Working Capital Rs.45,000; Total Debt Rs. 1,00,000 and Long-term Debt Rs.70,000.
The value of Current liabilities are ________.
Option 1: Rs. 70,000
Option 2: Rs. 1,00,000
Option 3: Rs. 30,000
Option 4: Rs. 45,000
Correct Answer: Rs. 30,000
Solution : Answer = Rs 30,000
Since the Total Debt includes Long-term Debt, we can consider it as part of the current liabilities. Hence, Total Debt = Long-term Debt + Current Liabilities.
Current Liabilities = Total Debt – Long-term Debt = 1,00,000-70,000 = Rs 30,000 Hence, the correct option is 3.
Question : Working Capital Rs.45,000; Total Debt Rs. 1,00,000 and Long-term Debt Rs.70,000.
The value of current assets are ___________.
Option 1: Rs 45,000
Option 2: Rs 15,000
Option 3: Rs 75,000
Option 4: None of the above
Question : Working capital is the difference between
Option 1: Total debt and long term debt
Option 2: Liquid assets and current liabilities
Option 3: Current assets and current liabilities
Option 4: Total assets and current liabilities
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