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:

Developing Potential

The process of nurturing and enhancing an individual's skills and abilities for future roles or performances.

Ongoing Activity

An action or series of actions that continue over a period of time, without a specific end point, often aimed at maintaining or improving a certain condition or state.

Valid Performance Appraisal

An evaluation process that accurately and reliably measures an employee's job performance and productivity.

Measurement Criteria

Standards or benchmarks used to evaluate or assess the effectiveness, quality, or performance of something.