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

question 4

Multiple Choice

An entity's owners' equity is one-third of its total liabilities. Its assets total $200 000. What is the amount of its owners' equity?

• A) $50 000
• B) $66 667
• C) $150 000
• D) $300 000

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Definitions:

Sustaining Stock Price

Efforts or strategies employed by a corporation to maintain or support the current market price of its shares.

Excess Cash

The amount of cash available exceeding what is necessary for day-to-day operations, often allocated for investment or returned to shareholders.

Business Relationships

The connections and interactions between a company and its customers, suppliers, partners, and other entities essential for its operation.

Brokerage Fees

Charges levied by a broker for executing transactions or providing specialized services.