If Total Liabilities Increased by $10,000 and the Assets Increased

question 2

Multiple Choice

If total liabilities increased by $10,000 and the assets increased by $10,000 during the accounting period, what is the change in the owner's equity amount?

• A) No effect on owner's equity
• B) Decrease of $10,000
• C) Increase of $20,000
• D) Decrease of $40,000

---

Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus strengthens a behavior or increases the likelihood of its repetition.

Unpleasant Stimulus

A negative or harmful stimulus that causes discomfort or aversion, often used in psychology to study learning, memory, and behavior conditioning.

Desired Behavior

A specific pattern of action that an individual or group aims to achieve or exhibit.

Nature

The processes within an organism that guide that organism to develop according to its genetic code.