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:

Perennial

Plants that live for more than two years, often going through cycles of growth, flowering, and dormancy.

Annual

A plant that completes its life cycle, from germination to the production of seeds, within one year, and then dies.

Naphthalene Acetic Acid

A synthetic compound resembling naturally occurring auxins, used to stimulate plant growth and rooting.

Auxin

A class of plant hormones that play a crucial role in coordinating various growth and behavioral processes in the plant's life cycle.