If Equity Is $300,000 and Liabilities Are $192,000, Then Assets

question 81

Multiple Choice

If equity is $300,000 and liabilities are $192,000, then assets equal:

• A) $108,000.
• B) $192,000.
• C) $300,000.
• D) $492,000.
• E) $792,000.

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Definitions:

Effective Annual Interest Rate

The actual interest rate on an investment or loan when compounding occurs more frequently than annually, reflecting the true financial cost or yield over a year.

IRA Account

Individual Retirement Account; a tax-advantaged investing tool that individuals use to earmark funds for retirement savings.

End-of-year Payments

Financial distributions made to investors or employees at the end of a fiscal year, often in the form of bonuses or dividends.

Investment Opportunity

A time-sensitive potential for investment that promises a probable return on the capital invested.