If Total Liabilities Increased by $69,000 During a Period of Time

question 46

Multiple Choice

If total liabilities increased by $69,000 during a period of time and stockholders' equity decreased by $27,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n)

• A)$69,000 increase.
• B)$96,000 increase.
• C)$42,000 decrease.
• D)$42,000 increase.

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Definitions:

Equilibrium Price

The market price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Supply Falls

A situation where the quantity of goods or services available decreases in relation to demand.

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market equilibrium.