If Total Liabilities Increased by $6000 Then

question 211

Multiple Choice

If total liabilities increased by $6000 then

• A) assets must have decreased by $6000.
• B) owner's equity must have increased by $6000.
• C) assets must have increased by $6000 or owner's equity must have decreased by $6000.
• D) assets and owner's equity each increased by $3000.

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Definitions:

Mezzanine Stage

A late-stage of funding in the growth of a company, representing a transition from venture capital financing to public offering or acquisition.

Pilot Test

An initial small-scale experiment or trial conducted to evaluate the feasibility, time, cost, risk, and adverse events of an innovative idea or project.

Prototype

A preliminary version, prototype, or iteration of a product developed to evaluate a concept or process, or to serve as an example for replication or educational purposes.

Capital

Financial assets or resources that businesses use to fund their operations and growth, including equity, debt, and other financial instruments.