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:

New-Product Development

The process of designing, creating, and bringing a new product or service to the market.

Cross-Docking

A logistics procedure where products received at a warehouse or distribution center are not stored but instead directly transferred from one truck to another, minimizing storage time and costs.

In-Process Inventory

Items or materials that are currently being worked on or processed in a manufacturing or production environment.

Cargo Containers

Large standardized shipping containers used to transport goods by sea, rail, or road.