If the Liabilities of a Company Increased $74,000 During a Period

question 52

Multiple Choice

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period,what was the effect on the assets?

• A)Assets would have increased $55,000.
• B)Assets would have decreased $55,000.
• C)Assets would have increased $19,000.
• D)Assets would have decreased $19,000.
• E)None of thesE.Assets = Liabilities + Owner's Equity

---

Definitions:

Employment Standards Legislation

Laws and regulations established to protect the rights of workers, setting minimum standards for pay, work hours, and conditions.

Pay Equity

The principle of ensuring that employees are compensated equally for work of equal or comparable value, aimed at preventing discrimination based on gender, ethnicity, or other irrelevant factors.

Minimum Age

The lowest legal age at which an individual is permitted to engage in a specific activity or employment.

Lag Strategies

Compensation approaches where organizations pay below market rates due to financial constraints but aim to offer other benefits to attract and retain employees.