If Total Liabilities Increased by $25,000 During a Period of Time

question 253

Multiple Choice

If total liabilities increased by $25,000 during a period of time and stockholders' equity decreased by $9,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n)

• A) $34,000 decrease.
• B) $16,000 decrease.
• C) $16,000 increase.
• D) $34,000 increase.

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Definitions:

Skill

An ability or expertise developed through practice and training, aimed at performing specific tasks effectively.

Participation

Involvement or taking part in a particular process, activity, or decision, typically within an organizational or group setting.

Ohio State Model

A leadership theory that derives from studies conducted at Ohio State University, identifying two dimensions of leadership behavior: consideration and initiating structure.

Initiating Structure

The degree to which a leader clearly defines and structures their role and the roles of their subordinates towards achieving set objectives.