A Company Has an Assets-To-Liabilities Ratio of 3:2 and Total

question 103

Multiple Choice

A company has an assets-to-liabilities ratio of 3:2 and total assets worth $6 million.What is its owners' equity?

• A) $1 million
• B) $2 million
• C) $4 million
• D) $9 million
• E) $12 million

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Definitions:

Legal

Relating to the law or the practice of law.

Traditional

Ideas, customs, or practices transmitted from generation to generation, often without change.

Social Hierarchy

The organization of individuals or groups in a society into levels of power, status, or priority, often based on factors like wealth, occupation, or social connections.

Economic Position

Relates to an individual's or entity's place or status in the economic hierarchy, influenced by income, wealth, and access to resources.