If the Assets of a Company Increase by $55,000 During

question 78

Multiple Choice

If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year,then the change in equity of the company during the year must have been:

• A)An increase of $80,000.
• B)A decrease of $80,000.
• C)An increase of $30,000.
• D)A decrease of $30,000.
• E)An increase of $25,000.

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Definitions:

Employee Stock Ownership Plan

A program that gives employees ownership interest in the company through stock ownership, often used as a corporate finance strategy.

Incentive Plan

A structured program designed to motivate and compensate employees beyond their regular paychecks, often based on performance, productivity, or achieving specific goals.

Stock Ownership Plans

Employee benefit plans that give workers ownership interest in the company through the acquisition of stock, often aimed at improving employee motivation and performance.

Stock Price

The cost of purchasing a share of a specific company, which can fluctuate based on market conditions and the company's performance.