If Total Liabilities Decreased by $30,000 and Stockholders' Equity Decreased

question 162

Multiple Choice

If total liabilities decreased by $30,000 and stockholders' equity decreased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $50,000 decrease
• B) $10,000 decrease
• C) $10,000 increase
• D) $50,000 increase

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Definitions:

Wertheimer

A psychologist known for founding Gestalt psychology, emphasizing the holistic and intrinsic patterns of perception and problem-solving.

Köhler

A psychologist known for his work in the field of Gestalt psychology, particularly his research on problem-solving in animals.

Koffka

Kurt Koffka, a German psychologist, was a co-founder of Gestalt psychology, which focuses on holistic perception and problem-solving.

Humanistic Theory

A psychological perspective that emphasizes the study of the whole person, looking at human behavior not only through the eyes of the observer but through the eyes of the person doing the behaving.