If Total Liabilities Decreased by $4,000, Then

question 174

Multiple Choice

If total liabilities decreased by $4,000, then

• A)stockholders' equity must have decreased by $4,000.
• B)assets must have decreased by $4,000, or stockholders' equity must have increased by $4,000.
• C)assets and stockholders' equity each increased by $2,000.
• D)assets must have increased by $4,000.

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Definitions:

Lower Inflation Rates

Lower inflation rates refer to a situation where there is a slow rate of increase in the general level of prices for goods and services, which can indicate a stable economic environment.

Foreign Subsidiary

A local operation completely owned by a foreign firm.

Local Firm

A business establishment that operates in a specific geographical area and typically serves the needs of a local community.

APEC

The Asia-Pacific Economic Cooperation, a forum for 21 Pacific Rim member economies that promotes free trade throughout the Asia-Pacific region.