If the difference between current assets and current liabilities is 60

Finance Jan 22, 2021

If the difference between current assets and current liabilities is 60. bill payable 150, creditors 40, prepaid expenses 10, then what is the total current assets? Select one: o a. 240 O b. 290 o c. 250 O d. 170 O e. None of the options

Expert Solution

Current Assets - Current liabilities = 60
Current Liabilities = B/P + Creditors = 150 + 40 = 190
Current Assets - 190 = 60
Current Assets = 60 + 190 = 250

Note: It has been assumed that prepaid expenses are already included in total current assets
It has been assumed that provided b/p and creditors are only current liabilities.

So, right option to chooose is "c. 250" .

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