If an Individual Asset Is Increased, Then

question 79

Multiple Choice

If an individual asset is increased, then

• A)there could be an equal decrease in a specific liability.
• B)there could be an equal decrease in stockholders' equity.
• C)there could be an equal decrease in another asset.
• D)None of these answer choices are correct.

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Definitions:

Preferred Stock

A type of stock that grants holders certain advantages over common stock, often including fixed dividends and priority in asset liquidation.

Preferred Stock

A type of stock that gives holders preferential rights over common stockholders in terms of dividends and claims on assets.

Risky Investment

An investment with a high degree of risk that could lead to the loss of the principal amount but also offers potentially high returns.

Proportionate Ownership

The percentage of ownership that an investor holds in a company, typically represented in terms of share ownership.