If the assets and liabilities of a firm were valued at ?17,200 and ?5,120 respectively, the capital of the firm would be?
Answer Details
The capital of a firm is the difference between its total assets and total liabilities. Therefore, to calculate the capital of the firm, we need to subtract the total liabilities from the total assets.
Given that the assets and liabilities are valued at ?17,200 and ?5,120 respectively, the capital of the firm would be:
Capital = Total assets - Total liabilities
Capital = ?17,200 - ?5,120
Capital = ?12,080
Therefore, the capital of the firm is ?12,080.
Option C - ?12,080 is the correct answer.