If Liabilities Increase $120,000 During a Given Period and Shareholders

question 33

Multiple Choice

If liabilities increase $120,000 during a given period and shareholders' equity decreases $25,000 during the same period, assets must:

• A) decrease $95,000
• B) increase $95,000
• C) decrease $145,000
• D) increase $145,000

Recognize the importance of accounting policy decisions in financial reporting.

Define market efficiency forms and the efficient-market hypothesis, including their relevance to financial reporting.

Understand the impact of political and debt hypotheses on accounting policy choices and their implications.

Understand the concept of market segmentation and its importance in marketing strategy.

---

Definitions:

Peaking

Reaching a highest point of development or performance; often used in the context of athletic, artistic, or personal achievement.

Older Age

A period in an individual's life characterized by advanced years, often associated with retirement and increased focus on health and life fulfillment.

Internal-External Scale

A psychological measure indicating the extent to which individuals attribute their successes or failures to internal factors (their own efforts) or to external factors (such as luck).

Nowicki-Strickland

A psychological assessment tool used to measure an individual's perceived locus of control.