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

question 44

Multiple Choice

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

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

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Definitions:

Unions

Organizations formed by workers to protect their rights and interests through collective bargaining with employers.

Efficiency Wages

Wages set above the market-clearing level by employers to increase worker productivity, discourage turnover, and reduce shirking.

Nutritious Diet

A diet that provides all the essential nutrients in correct proportions for healthy living.

Market Power

The ability of a firm or group of firms to control prices or exclude competition in a market.