If Total Liabilities Increased by $2,000 and the Assets Increased

question 75

Multiple Choice

If total liabilities increased by $2,000 and the assets increased by $2,000 during the accounting period,what is the change in the owner's equity amount?

• A)No effect on owner's equity
• B)Decrease of $4,000
• C)Increase of $8,000
• D)Decrease of $8,000

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Definitions:

Directional Hypothesis

A hypothesis that specifies the direction of the expected difference or relationship between two variables.

Critical Value

A threshold in hypothesis testing that determines the boundary for rejecting or failing to reject the null hypothesis.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it marks the threshold of statistical significance.

P Value

The probability of obtaining test results at least as extreme as the observed results, assuming that the null hypothesis is correct.