If Total Liabilities Decreased by $14,000, and Shareholders' Equity Increased

question 88

Multiple Choice

If total liabilities decreased by $14,000, and shareholders' equity increased by $6,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n)

• A) $20,000 increase.
• B) $8,000 decrease.
• C) $8,000 increase.
• D) $14,000 increase.

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Definitions:

Indemnification

The process by which one party agrees to compensate another for any loss or damage that has occurred or may occur.

Fraud

A wrongful statement, action, or concealment pertinent to the subject matter of a contract knowingly made to damage the other party.

Record of Transactions

A detailed log or document that keeps track of all the transactions made within a certain period.