If Total Assets Equal $345,000 and Total Stockholders' Equity Equal

question 251

Multiple Choice

If total assets equal $345,000 and total stockholders' equity equal $140,000, then total liabilities must equal

• A) $485,000.
• B) $205,000.
• C) $140,000.
• D) There is not enough information given to determine this.

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Definitions:

Flotation Cost

The total costs incurred by a company in issuing new securities, including underwriting, legal, registration, and distribution fees.

External Financing

denotes the process of obtaining capital from outside sources, like banks or investors, to fund operations, expansions, or projects.

Market Value

The prevailing price for an asset or service that is available for transaction in an open marketplace.