If Total Liabilities Increased by $46,000 During a Period of Time

question 20

Multiple Choice

If total liabilities increased by $46,000 during a period of time and stockholders' equity decreased by $18,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n)

• A) $46,000 increase.
• B) $64,000 increase.
• C) $28,000 decrease.
• D) $28,000 increase.

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Definitions:

Markup Rate

The percentage increase on the cost price of goods to achieve the selling price.

Selling Price

The amount for which a product or service is sold to the purchaser.

Proportion

An equation that states two ratios are equivalent, often used to solve for an unknown value.

X

Commonly used as a variable or unknown quantity in mathematics and algebra.