PRC-1 · Chapter 1 · Question 95 of 100
'Nimbus IT Solutions' has an owner's equity balance of Rs. 850,000 and total external liabilities amounting to Rs. 320,000. What is the total value of the business assets?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 1,170,000
Explanation
Using the accounting equation (Total Assets = Equity + Liabilities), the total assets equal Rs. 850,000 + Rs. 320,000 = Rs. 1,170,000.
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