If Total Liabilities Increased by $25,000 and Shareholders' Equity Increased

question 87

Multiple Choice

If total liabilities increased by $25,000 and shareholders' equity increased by $5,000 during a period of time, then total assets must change by what amount and direction (increase or decrease) during that same period?

• A)$20,000 decrease
• B)$20,000 increase
• C)$25,000 increase
• D)$30,000 increase

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Definitions:

Subscapularis

A muscle in the shoulder responsible for the internal rotation of the shoulder joint.

Scapula

A flat, triangular-shaped bone that forms part of the shoulder girdle, providing attachment sites for muscles of the shoulder.

Anterior Side

The front side of the body or any anatomical structure.

Rotator Cuff

A group of muscles and tendons that surround the shoulder joint, keeping the head of the upper arm bone firmly within the shallow socket of the shoulder.