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

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Definitions:

Disaccharide

A sugar molecule composed of two monosaccharides joined together, examples include sucrose and lactose.

Nucleic Acids

Large biological molecules essential for all known forms of life, including DNA and RNA, which carry genetic information.

DNA and RNA

Nucleic acids that constitute the genetic material of living organisms, with DNA responsible for storing and transmitting genetic information and RNA for protein synthesis.

Condensation

The process by which gas changes into a liquid when it cools.