9) If a firm has assets of $1 million, which of the following statements is true?...

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9) If a firm has assets of $1 million, which of the following statements is true? a. Liabilities cannot exceed $1 million b.

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Answer 1

Answer #1

Owners' Equity cannot exceed $1 million is a true statement.

Total assets = Owners' Equity + Total liabilities, If total assets is $1 million than Owners' Equity and liabilities together are equal to $1 million

Hence option c is correct.

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Answer 2

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