If Total Liabilities Decreased by $134,000 During a Period of Time

question 43

Multiple Choice

If total liabilities decreased by $134,000 during a period of time and shareholders' equity increased by $103,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n)

• A)$134,000 increase.
• B)$103,000 increase.
• C)$31,000 decrease.
• D)$31,000 increase.

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Definitions:

Current Account

A component of a country's balance of payments that includes the balance of trade, net income from abroad, and net current transfers.

Double-Entry Bookkeeping

An accounting practice that ensures every transaction affects two accounts, maintaining the balance of the accounting equation.

Foreign Currency

Money or currency used in another country, differing from one's own domestic currency.

Exchange Rate

The rate at which one currency can be exchanged for another currency.