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

question 104

Multiple Choice

If the liabilities of a business increased $75,000 during a period of time and the 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:

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Information flow from higher levels of a hierarchy to lower levels, typically from management to employees.

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