If Total Liabilities Decreased by ¥25,000 and Equity Increased by ¥5,000

question 201

Multiple Choice

If total liabilities decreased by ¥25,000 and 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)¥20,000 increase
• C)¥25,000 increase
• D)¥30,000 increase

Recognize the resources available for business planning assistance, including Small Business Development Centers.

Understand the role of a business plan in testing feasibility, raising capital, and guiding future operations.

Learn about ensuring product quality, developing service policies, and establishing contingencies within a business plan.

Understand the essential components and structure of a business plan.

---

Definitions:

Volume Variance

A measure used in budgeting and financial analysis to quantify the difference between planned and actual volumes of production or sales.

Even Flow

A management strategy aimed at maintaining consistent production levels, minimizing fluctuations in inventory and workload.

Machine Breakdowns

Occurrences where industrial or office machinery fails to operate, often leading to operational delays and the need for repairs.

Variable Factory Overhead

Costs in the production process that vary with the level of production output, such as utilities and materials.