If Total Liabilities Increased by $90,000 and Stockholders' Equity Increased

question 137

Multiple Choice

If total liabilities increased by $90,000 and stockholders' equity increased by $30,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A)$120,000 decrease
• B)$120,000 increase
• C)$150,000 increase
• D)$180,000 increase

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Definitions:

Idea Box

A conceptual or physical repository for collecting suggestions, creative solutions, or innovative ideas, often used in organizational or team settings.

Combinations

The act of combining or joining two or more elements to form a new whole.

Organizational Effectiveness

The measure of an organization's efficiency in achieving its goals and objectives through the optimal use of resources, processes, and people.

Profitability

The degree to which a business or activity yields financial gain or profit.