The Balance Sheet of Gatekeeper Reports Total Liabilities of $2,000,000

question 33

Multiple Choice

The balance sheet of Gatekeeper reports total liabilities of $2,000,000.The debt to equity ratio is 2.5.What is Gatekeeper's stockholders' equity?

• A)$800,000
• B)$320,000
• C)$1,000,000

---

Definitions:

Forged Checks

Checks that have been illegally altered or signed without the account holder's authorization.

FDIC

The Federal Deposit Insurance Corporation, a United States government agency that insures deposits at banks and thrifts up to the legal limit.

Insurance Coverage

A contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.

Electronic Fund Transfer Act

A law that protects consumers when they transfer funds electronically, including ATM transfers, direct deposits, and debit card transactions.