If Total Liabilities Increased by ¥26,000 During a Period of Time

question 223

Multiple Choice

If total liabilities increased by ¥26,000 during a period of time and equity decreased by ¥9,000 during the same period, then the amount and direction of the period's change in total assets is a(n)

• A) ¥26,000 increase.
• B) ¥35,000 increase.
• C) ¥17,000 decrease.
• D) ¥17,000 increase.

---

Definitions:

GAAP

GAAP, or Generally Accepted Accounting Principles, are a set of rules and standards designed to improve the clarity, consistency, and comparability of the communication of financial information.

Departmental Overhead Rate

A measure used to allocate overhead costs to individual departments based on certain criteria, like direct labor hours.

Cost Object

Any item for which cost is measured and assigned, such as products, services, or departments.

Plantwide Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, used to allocate overhead costs to products.