If Total Liabilities Increased by $18,000 and Shareholders' Equity Increased

question 20

Multiple Choice

If total liabilities increased by $18,000 and shareholders' equity increased by $21,000 during a period of time, then total assets must change by what amount and direction (increase or decrease) during that same period?

• A) $18,000 increase
• B) $21,000 increase
• C) $39,000 decrease
• D) $39,000 increase

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Definitions:

Knowledge

Information, understanding, and skills that individuals acquire through experience or education; the theoretical or practical understanding of a subject.

Skills

Specific abilities and capacities to carry out different tasks, acquired through practice, training, or experience.

Reliable Measurement

The consistency and stability of the data collected over time, ensuring accuracy in research or assessment.

Consistent Results

Outcomes that are regularly uniform and predictable across a series of tests or evaluations, indicating reliability.