A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

Academy of PakistanTest & Learning

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Academy of PakistanTest & Learning

804Active Users

408FinanceMedium

ARs. 300,000

BRs. 1100,000

CRs. 800,000

DRs. 500,000

Correct answer

C. Rs. 800,000

Explanation

Assets = Liabilities + Owner’s Equity = 300,000 + 500,000 = 800,000

A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets? - Answer and Explanation | Academy of Pakistan