If Total Liabilities Increased by $25,000 and Shareholders' Equity Increased

question 28

Multiple Choice

If total liabilities increased by $25,000 and shareholders' equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $30,000 increase.
• B) $20,000 decrease.
• C) $25,000 increase.
• D) $20,000 increase.

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Definitions:

Divisional Transfers

The movement of resources, employees, or assets between divisions within the same organization.

Internal Recruitment

The process of filling vacant job positions with existing employees from within the organization.

External Recruitment

The process of filling job vacancies within an organization by hiring individuals from outside the organization.

Campus Recruitment

The process by which companies visit educational institutions to recruit students and recent graduates directly into entry-level positions.