From the Following Statement of Financial Position Extract of RiffRaff

question 3

Multiple Choice

From the following statement of financial position extract of RiffRaff plc,calculate the working capital:
$$\begin{array} { l c } & £ 000 \\\text { Non-current assets } & 210 \\\text { Non-current liabilities } & \\10 \% \text { debentures } & 100 \\\text { Equity } & \\\quad \text { Share capital } & 90 \\\text { Retained earnings } & 60\end{array}$$

• A) £110,000
• B) £(40,000)
• C) £40,000
• D) £60,000

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Definitions:

Deductible

An amount that can be subtracted from an individual's or organization's taxable income, thereby reducing the amount of tax owed.

Tax Deductible

Refers to a qualifying expense that can reduce an entity's taxable income, and thereby reduce its tax liability.

Dividends

Sum of money distributed by a corporation to those holding its shares, originating from the firm's earnings allocated among its stockholders.

Expense

Costs incurred by a business in the process of earning revenues, typically classified as operating or non-operating expenses.