If Total Liabilities Increased by $8,000, Then

question 194

Multiple Choice

If total liabilities increased by $8,000, then

• A) assets must have decreased by $8,000.
• B) stockholders' equity must have increased by $8,000.
• C) assets must have increased by $8,000, or stockholders' equity must have decreased by $8,000.
• D) assets and stockholders' equity each increased by $4,000.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Non-Controlling Interest

The portion of a subsidiary corporation's equity that is not owned by the parent corporation.

Consolidated Balance Sheet

A financial statement that summarizes the financial position of a parent company and its subsidiaries.

Fair Value

The proceeds from the sale of an asset or the outlay to move a liability in a non-chaotic market operation on the date of gauging.