If Liabilities Increase $120,000 During a Given Period and Stockholders

question 1

Multiple Choice

If liabilities increase $120,000 during a given period and stockholders' equity decreases $25,000 during the same period, assets must:

• A)increase $95,000.
• B)increase $145,000.
• C)decrease $145,000.
• D)decrease $95,000.

---

Definitions:

Chief Executive Officer

The highest-ranking officer in a company or organization, responsible for making major corporate decisions and managing the overall operations and resources.

Corporate Takeover

The acquisition of one company by another, where the acquiring company gains control over the target company's operations and decision-making.

Nonprofit

Organizations that operate primarily for purposes other than generating profit, often focusing on social, educational, charitable, or religious objectives.

Chief Executive Officers

Top executives in charge of managing an organization or corporation, responsible for strategic planning, decision-making, and overall direction.