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Options
-
3.5
Correct answer
- B
2.75
- C
1.4
- D
1.7
Why this is the answer
Equity = Assets – Liabilities = 70,000 – 50,000 = 20,000. Asset to Equity Ratio = Assets ÷ Equity = 70,000 ÷ 20,000 = 3.5.
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