If Total Liabilities Increased by $4,000, Then

question 140

Multiple Choice

If total liabilities increased by $4,000, then

• A)assets must have decreased by $4,000.
• B)equity must have increased by $4,000.
• C)assets must have increased by $4,000, or equity must have decreased by $4,000.
• D)assets and equity each increased by $2,000.

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Definitions:

Interest Revenue

Income that is earned from investments, loans, or any other interest-bearing assets.

Internal Control

A process designed to ensure the reliability of financial reporting, compliance with laws and regulations, and effective and efficient operations.

Monitoring

Involves the continual oversight of activities, processes, or systems to ensure they are functioning correctly and achieving desired outcomes.

Business Goals

The objectives that a company aims to achieve, which guide its strategic planning and operational activities.