If Total Liabilities Decreased by $75,000 and Stockholders' Equity Increased

question 172

Multiple Choice

If total liabilities decreased by $75,000 and stockholders' equity increased by $15,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A)$60,000 decrease
• B)$60,000 increase
• C)$75,000 increase
• D)$90,000 increase

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Definitions:

Organizational Rules

Established guidelines and protocols within an organization that dictate the behavior, actions, and decisions of its members.

Groupthink

A psychological phenomenon occurring in a decision-making group where the desire for harmony or conformity results in an irrational or dysfunctional outcome.

Stereotypical False Assumptions

Erroneous beliefs or generalized ideas about a group or category of people that do not account for individual diversity and complexity, often leading to misunderstanding and discrimination.

Expressed Discomfort

Expressed discomfort is the verbal or non-verbal communication of unease, dissatisfaction, or distress from an individual or group.