If Total Liabilities Decreased by $60000 and Owner's Equity Increased

question 64

Multiple Choice

If total liabilities decreased by $60000 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) $90000 decrease
• B) $30000 decrease
• C) $30000 increase
• D) $90000 increase

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Definitions:

Disadvantages

The negative or less favorable aspects of a situation, decision, or item.

Treasury Stock

Shares bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and receiving dividend payments.

Repurchase

The action of buying back previously sold shares or goods, often by the company that issued or sold them initially.