If Assets Are $99,000 and Liabilities Are $32,000, Then Equity

question 150

Multiple Choice

If assets are $99,000 and liabilities are $32,000, then equity equals:

• A) $131,000.
• B) $32,000.
• C) $198,000.
• D) $67,000.
• E) $99,000.

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Definitions:

Options Contract

A financial agreement granting the buyer the opportunity, but not the obligation, to buy or sell an asset at a specific price on or before a certain date.

Forward Contract

A personalized agreement between two individuals to purchase or sell a property at a designated future time at a price determined currently.

Futures Contract

A standardized legal agreement to buy or sell a specific commodity or asset at a predetermined price at a specified time in the future.

Interest Rate Collar

A financial derivative strategy used to limit the range of possible interest rates movements by buying and selling interest rate options.