If Total Liabilities Decrease by $22,000 and Owner's Equity Increases

question 66

Multiple Choice

If total liabilities decrease by $22,000 and owner's equity increases by $8,000 during the period, then assets must have:

• A)increased $30,000.
• B)decreased $30,000.
• C)increased $14,000.
• D)decreased $14,000.

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Definitions:

Equality

The condition in which individuals have the same status, rights, and chances in life.

Great Compromise

An agreement reached during the Constitutional Convention of 1787 that established a two-house legislature with proportional representation in the lower house and equal representation of the states in the upper house.

Connecticut Compromise

A key agreement during the drafting of the United States Constitution that balanced representation by giving states equal representation in the Senate and proportional representation in the House of Representatives.

Constitution

The fundamental principles or established precedents according to which a state or other organization is governed.