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:

Financing Statement

A document filed by a secured creditor to give public notice of their security interest in a debtor's personal property.

Note

A brief record of facts, topics, or thoughts written down as an aid to memory.

Perfected Security Interest

A legal claim or lien that has been formally established or registered, providing a creditor priority over other claimants in case of debtor default.

Bankruptcy

A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).