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SSC Audit Tax Finance P-II QUESTION #6199
Question 1
If Total Assets = $\$2,000$ and Total Equity = $\$800$, what is the 'Equity Multiplier'?
  • 2.5✔️
  • 0.4
  • 1.2
  • 2
Correct Answer Explanation
Equity Multiplier = $\text{Total Assets} / \text{Total Equity} = 2000 / 800 = 2.5$ [cite: 38].