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

---

Definitions:

Golgi Apparatus

A cell organelle that modifies, sorts, and packages proteins and lipids for secretion or use within the cell, playing a key role in cell transport.

Lysosomes

Organelles in eukaryotic cells containing digestive enzymes, responsible for breaking down waste materials and cellular debris.

Mitochondria

Cell organelles responsible for the production of ATP, the energy currency of the cell, through the process of cellular respiration.

Golgi Apparatus

A cell organelle that modifies, sorts, and packages proteins and lipids for secretion or for use within the cell, playing a key role in the transport and delivery system of the cell.