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:

Homeostasis

A state of equilibrium, balance, or lack of conflict.

Implicit

Something suggested or understood without being directly expressed.

Explicit

Clearly expressed or fully detailed, leaving no room for confusion or doubt.

Social Norms

Shared, unstated rules or standards of behavior that are considered acceptable within a group or society.