If Total Liabilities Decreased by $15,000 and Owner's Equity Decreased

question 51

Multiple Choice

If total liabilities decreased by $15,000 and owner's equity decreased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $20,000 increase
• B) $10,000 increase
• C) $20,000 decrease
• D) $10,000 decrease

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Definitions:

Compass Sense

The sense of direction an animal requires to travel in a straight line toward a destination.

Map Sense

An innate ability or skill that helps organisms navigate through their environment, often seen in migratory animals.

Cognition

The mental processes involved in gaining and using knowledge; cognition is learning and knowing, including awareness, thinking, processing information, reasoning, and awareness of thoughts, perceptions, and self.

Clock Proteins

Molecular components that constitute the biological clock, regulating circadian rhythms in organisms by oscillating in a 24-hour cycle.