PRC-1 · Chapter 1 · Question 52 of 100
The total capital of 'Zephyr Traders' is Rs. 450,000 and its total liabilities stand at Rs. 150,000. Based on the fundamental accounting equation, what is the value of the firm's total assets?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 600,000
Explanation
The fundamental accounting equation states that Total Assets = Capital (Equity) + Total Liabilities. Therefore, Rs. 450,000 + Rs. 150,000 = Rs. 600,000.
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