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

question 36

Multiple Choice

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

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

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Definitions:

Method Call

The process of invoking a method's functionality in a program, allowing it to execute its tasks.

Object

In programming, an instance of a class that may contain attributes and methods to simulate entities with specific characteristics and behaviors.

Class

A template or blueprint for creating objects, defining what attributes and methods they have in object-oriented programming.

Method

A function defined in a class that usually performs a specific operation or action, taking zero or more arguments.