If Total Liabilities Decreased by $30,000 and Stockholders' Equity Decreased

question 162

Multiple Choice

If total liabilities decreased by $30,000 and stockholders' equity decreased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $50,000 decrease
• B) $10,000 decrease
• C) $10,000 increase
• D) $50,000 increase

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Definitions:

X-Teams

represents a concept in organizational theory, emphasizing teams that are externally oriented, have flexible boundaries, and are highly networked.

Externally Oriented

describes an outward focus, typically pertaining to how organizations or individuals prioritize external factors or stakeholders in their decision-making processes.

Organizational Borders

The boundaries that define the edges of an organization, distinguishing it from its environment and other organizations, and shaping the flow of information and resources.

Social Comparison Theory

A psychological theory suggesting that individuals determine their own social and personal worth based on how they stack up against others.