If Total Liabilities Increased by ¥35,000 and Equity Increased by ¥10,000

question 231

Multiple Choice

If total liabilities increased by ¥35,000 and equity increased by ¥10,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) ¥45,000 decrease
• B) ¥45,000 increase
• C) ¥60,000 increase
• D) ¥70,000 increase

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Definitions:

Operations Managers

Individuals responsible for overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services.

Metrics

Standardized measurements used to evaluate and compare the performance of processes, products, or organizations.

Assemble-to-Order (ATO)

A production strategy where products are assembled only after receiving a customer's order, allowing for customization.

Finished Goods Inventories

Stocks of completed products awaiting sale or shipment, representing one of the critical components of a company's inventory.