If Total Liabilities Decreased by $30000 and Owner's Equity Decreased

question 100

Multiple Choice

If total liabilities decreased by $30000 and owner's equity decreased by $15000 during a period of time then total assets must change by what amount and direction during that same period?

• A) $45000 decrease
• B) $15000 decrease
• C) $15000 increase
• D) $45000 increase

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Definitions:

Mental Hospital

A healthcare facility specializing in the treatment and care of individuals with mental health conditions.

Insanity

A legal and psychological term referring to a mental impairment or disorder that limits a person's ability to understand right from wrong, or to manage their own affairs.

Legal System

The comprehensive set of rules and principles that govern a society, enforced through social institutions to regulate behavior and maintain order.

M'Naghten Rule

A legal standard to determine whether a defendant was insane at the time of committing a crime and is therefore not responsible for their actions.