An FI Has Assets of $800 Million and Liabilities of $740

question 105

Multiple Choice

An FI has assets of $800 million and liabilities of $740 million. If the FI had contingent assets of $40 million and contingent liabilities of $160 million, calculate the stockholder's true net worth (ignore the option mentioned in previous question) .

• A)-$60 million.
• B)$60 million.
• C)$70 million.
• D)-$160 million.
• E)$190 million.

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Definitions:

Professional Service Firms

Businesses that offer specialized services requiring professional skills, such as law, consulting, and accounting firms.

Mass Services Entities

Companies or organizations that deliver standardized services to a large number of customers, focusing on efficiency and high volume.

Merchandising Entities

Companies that purchase goods at wholesale prices and sell them at retail prices, making a profit from the markup.

Cost of Goods

The total expense incurred to produce products sold by a company, including direct materials, direct labor, and manufacturing overheads.