If Owner's Equity Is $200,000 and Total Assets Are $325,000

question 77

Multiple Choice

If owner's equity is $200,000 and total assets are $325,000, total liabilities would be:

• A)$200,000.
• B)$525,000.
• C)$125,000.
• D)$325,000.

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Definitions:

Date of Acquisition

The specific date on which one company gains control over another entity or asset, crucial for accounting and legal purposes.

Consolidated Common Stock

Consolidated common stock refers to the aggregation of common stock holdings across a group of consolidated companies, presented as a singular amount in consolidated financial statements.

Par Value

The face value of a bond or the stock value stated in the corporate charter, often used as a legal capital threshold for shares.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, with voting rights and potential dividends.