If Total Liabilities Increased by $25,000 and Shareholders' Equity Increased

question 121

Multiple Choice

If total liabilities increased by $25,000 and shareholders' equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $20,000 decrease
• B) $25,000 increase
• C) $30,000 increase
• D) $20,000 increase

---

Definitions:

Monosaccharides

Simple sugars that cannot be hydrolyzed to smaller carbohydrates, examples include glucose and fructose.

Water Soluble

Describes substances that can dissolve in water.

Fischer Projection

A two-dimensional representation of a three-dimensional organic molecule by projection, displaying chiral centers and spatial configuration.

D-Glucose

A monosaccharide sugar with several key biological roles, often referred to as blood sugar, dextrose, or grape sugar.