If Liabilities Are $55,000 and Assets Are $123,600, Equity Is

question 15

Multiple Choice

If liabilities are $55,000 and assets are $123,600, equity is:

• A)$178,400.
• B)$68,600.
• C)$178,600.
• D)$68,400.

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Definitions:

Legal Duty

An obligation arising from law that requires an individual or entity to conform to a standard of conduct.

Prudent Person

An individual who exercises caution and good judgment when making decisions, often used as a standard for legal and financial decisions.

Misstatement

An error or inaccuracy in financial information or statements, which can be intentional (fraud) or unintentional.

Rebuttable Presumption

A legal presumption that can be overturned or challenged with evidence to the contrary, typically affecting the burden of proof in legal proceedings.