If the Liabilities of a Business Increased $75,000 During a Period

question 71

Multiple Choice

If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:

• A) Decreased $105,000.
• B) Decreased $45,000.
• C) Increased $30,000.
• D) Increased $45,000.
• E) Increased $105,000.

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Definitions:

Exports

Goods or services produced domestically and sold to buyers in another country.

Gold Standard

A monetary system in which the value of a country's currency is directly linked to a specified amount of gold.

U.S. Dollar

The official currency of the United States, widely used as a global reserve currency and for international transactions.

Backed

Supported or secured, often used in financial contexts to refer to investments supported by tangible assets.