If Total Assets Are $68,000 and Total Capital Is $30,000

question 46

Multiple Choice

If Total Assets are $68,000 and Total Capital is $30,000, Liabilities must equal:

• A) $38,000.
• B) $30,000.
• C) $98,000.
• D) $68,000.

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Definitions:

Price-Earnings Ratio

A financial measurement for equities determined by dividing the share's market price by its earnings per share.

Market Price

The immediate price point at which assets or services can be exchanged in the market.

Common Stock

A type of stock representing ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Dividends

Payments made by a corporation to its shareholder members, usually out of profits or reserves.