If Total Liabilities Decreased by $75,000 and Stockholders' Equity Decreased

question 107

Multiple Choice

If total liabilities decreased by $75,000 and stockholders' equity decreased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $100,000 increase
• B) $50,000 decrease
• C) $100,000 decrease
• D) -$50,000 decrease

---

Definitions:

Corporate Vision

A statement that outlines an organization's long-term aspirations and goals, guiding its future direction.

Resale Price Maintenance

An agreement between a manufacturer and its distributors to sell a product at a specified minimum price.

Price-Fixing

An illegal agreement between parties to set prices at a specific level, often higher than what would be set through free-market competition, to control or manipulate the market.

Competitive Pressure

The force exerted on a company by other entities within the same market that compels it to maintain or improve its competitive edge.