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

question 4

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 the choices are correct.

---

Definitions:

Acreage Limitation

Policies or regulations that restrict the amount of land that can be used or owned, often for agricultural purposes.

Import Tariff

A tax imposed by a government on goods imported from other countries, often to protect domestic industries.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, due to higher market prices.

Consumer Surplus

The contrast between the total price consumers are prepared to pay for a good or service and what they end up paying in reality.