On January 1, 2020, Total Assets for Liftoff Technologies Were

question 63

Multiple Choice

On January 1, 2020, total assets for Liftoff Technologies were $125,000; on December 31, 2020, total assets were $145,000. On January 1, 2020, total liabilities were $110,000; on December 31, 2020, total liabilities were $115,000. What are the amount of the change and the direction of the change in Liftoff Technologies shareholders' equity for 2020?

• A) increase of $15,000
• B) decrease of $30,000
• C) decrease of $15,000
• D) increase of $30,000

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Definitions:

Variable Overhead

Costs that fluctuate with production levels, such as utilities or materials used in the manufacturing process.

Variable Costing

An accounting method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overheads - in product costs.

Variable Costs

Costs that change in proportion to the level of production or business activity.