If Total Liabilities Decreased by $40000 and Owner's Equity Increased

question 130

Multiple Choice

If total liabilities decreased by $40000 and owner's equity increased by $30000 during a period of time then total assets must change by what amount and direction during that same period?

• A) $50000 decrease
• B) $10000 decrease
• C) $10000 increase
• D) $50000 increase

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Definitions:

Normal Tone

In medical terms, it refers to the normal tension or firmness of muscles; in communication, it implies using a standard or expected level of enthusiasm or respect.

Convergent Thinking

A cognitive process in which an individual focuses on finding a single, correct solution to a problem.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, often leading to novel conclusions or unique solutions.

Human Brain

Human Brain is the complex organ in humans that is the center of the nervous system, responsible for cognitive functions, emotions, and controlling body activities.