_____ In general, an entity's equity at risk is deemed sufficient to permit the entity to finance its activities without additional subordinated financial support if the equity at risk is
A) At least 10% of the entity's total liabilities.
B) At least 10% of the entity's total long-term debt.
C) At least 10% of the entity's total assets.
D) More than $1,000,000.
E) More than $5,000,000.

Question

Quizplus · Accepted Answer

Equity at risk is considered sufficient if it is at least 10% of the entity's total assets. This ratio indicates a healthy level of equity to support the entity's operations and investments, reducing reliance on debt.

_____ in General, an Entity's Equity at Risk Is Deemed