If Total Liabilities Increased by $15,000 and Shareholders' Equity Increased

question 76

Multiple Choice

If total liabilities increased by $15,000 and shareholders' equity increased by $15,000 during a period of time, then total assets must change by what amount and direction (increase or decrease) during that same period?

• A)$15,000 decrease
• B)$15,000 increase
• C)$30,000 decrease
• D)$30,000 increase

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Definitions:

Time Management

The practice of organizing and planning how to divide one's time between specific activities to increase efficiency and productivity.

Manufacturing Equipment

Heavy industrial machines or devices used in the production process to manufacture goods and products.

Expected Rate Of Return

The annual rate of return that a firm expects to obtain through a capital investment.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.