If Total Liabilities Increased by $30,000 and Stockholders' Equity Increased

question 6

Multiple Choice

If total liabilities increased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $50,000 decrease
• B) $10,000 decrease
• C) $10,000 increase
• D) $50,000 increase

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Definitions:

Physiological Psychology

A subfield of psychology that focuses on understanding the biological bases of behavior and mental processes.

Self-actualized Person

An individual who has realized and fulfilled their own potential and capabilities, as described in the hierarchy of needs by Abraham Maslow.

Independent

Having the freedom or capacity to act or make decisions without being influenced or controlled by others.

Creative

Having the ability or power to create, characterized by originality of thought or inventiveness.