An Entity's Owners' Equity Is One-Third of Its Total Assets

question 27

Multiple Choice

An entity's owners' equity is one-third of its total assets. Its liabilities total $100 000. What is the amount of its total assets?

• A) $100 000
• B) $150 000
• C) $200 000
• D) $300 000

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Definitions:

Retailer

A business entity that sells goods or services directly to consumers, acting as the final link in the supply chain.

Profit (Loss)

The financial result of operations, where profit indicates revenue exceeds expenses, and loss indicates expenses exceed revenue.

Sale Price

The final price of a product or service after any discounts or promotions have been applied.

Net Profit

The total earnings after all expenses and taxes have been subtracted from revenue.