If the Liabilities of a Business Increased $8,000 During a Period

question 220

Multiple Choice

If the liabilities of a business increased $8,000 during a period of time and equity in the business decreased $4,000 during the same period, the assets of the business must have

• A) Decreased $12,000
• B) Decreased $4,000
• C) Increased $12,000
• D) Increased $4,000
• E) Increased $6,000

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Definitions:

Duty of Due Care

A legal obligation to exercise a reasonable level of care to avoid causing harm to others.

Grizzly Bear

A large species of brown bear inhabiting North America, recognized for its size and significant strength.

Foreseeable Harm

A concept in law referring to the anticipation of harm that a reasonable person in similar circumstances would expect.

Contributory Negligence

A legal doctrine under which a party's own negligence contributes to their harm and may limit or bar their recovery for damages.