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.

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Definitions:

Economic Problems

Issues affecting the financial stability, growth, and sustainability of an economy, often characterized by inflation, unemployment, and recession.

Slave Power

A term used to describe the perceived political power held by slave owners in the United States pre-Civil War, influencing legislation and government.

Increase of Fear

A situation where the level of anxiety, worry, or dread in a population or individual grows significantly, often in response to real or perceived threats.

Second Bank of the United States

A federal institution that operated from 1816 to 1836, aimed at stabilizing and improving the national economy but faced opposition, leading to its closure.