If Total Liabilities Decreased by $50,000 and Stockholders' Equity Increased

question 196

Multiple Choice

If total liabilities decreased by $50,000 and stockholders' equity increased by $10,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $40,000 decrease
• B) $40,000 increase
• C) $50,000 increase
• D) $60,000 increase

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Definitions:

Performance-Oriented

An approach that prioritizes achievement and effectiveness, often in the context of work or competition.

Controlling

In management, this involves monitoring performance, comparing it against goals, and implementing corrective actions to ensure achievement of objectives.

Planning

A process involving the setting of goals, developing strategies to achieve those goals, and outlining tasks and schedules to implement the strategies.

Action Orientations

An individual's or organization's propensity to take initiative, make decisions, and execute plans effectively and efficiently.