A firm has net assets of £8,000, net current assets of £3,000 and no long-term debt.
Its fixed assets are?
Select ONE answer:
- £3,000
- £5,000
- £8,000
- The total of fixed assets cannot be ascertained from the information provided.
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Not correct
- Correct – Fixed Assets + Net Current Assets = Net Assets. Thus Fixed Assets + £3,000 2= £8,000, Therefore, Fixed Assets = £5,000
- Not correct
- Not correct
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