The Equity of Autumn Company Is $150,000 and the Total

question 88

Multiple Choice

The equity of Autumn Company is $150,000 and the total liabilities are $90,000. Its total assets would be:

• A)$300,000.
• B)$180,000.
• C)$60,000.
• D)$240,000.

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Definitions:

Lock-up Restrictions

Contractual limitations on the sale of securities, typically imposed on company insiders following an initial public offering.

Less Liquid

A term describing an asset that cannot be quickly sold or converted into cash without significant loss of value.

More Liquid

Describes an asset or market that allows for assets to be bought or sold quickly without significantly affecting the asset's price.

Front-end Commission

A fee paid when purchasing shares of a mutual fund, upfront, which reduces the amount invested from the start.