If Total Liabilities Decreased by $46,000 During a Period of Time

question 8

Multiple Choice

If total liabilities decreased by $46,000 during a period of time and stockholder's equity increased by $60,000 during the same period,the amount and direction increase or decrease of the period's change in total assets is

• A)$106,000 increase
• B)$14,000 increase
• C)$14,000 decrease
• D)$106,000 decrease

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Definitions:

Cost Functions

A mathematical relationship expressing the cost of production as a function of the quantity of goods produced.

Brand Name

A name owned by a particular firm that distinguishes its products from those of other firms.

Economic Profit

The net gain of a company after deducting both its explicit and implicit expenditures from its aggregate revenue.

Monopolistic Competitor

a firm that operates in a market with many competitors, each offering a product that is similar but not identical.