If Total Liabilities Decreased by $50,000 and Stockholders' Equity Increased

question 115

Multiple Choice

If total liabilities decreased by $50,000 and stockholders' equity increased by $30,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $80,000 decrease
• B) $20,000 decrease
• C) $20,000 increase
• D) $80,000 increase

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Definitions:

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, essential for the circulatory system's functioning.

Appetite

The natural desire to satisfy bodily needs, especially for food.

Self-confidence

The belief in one's own abilities and judgment, which fosters a sense of trust and confidence in oneself across various situations.

Stimulants

Substances that increase the activity of the nervous system, resulting in increased alertness, attention, and energy.