If the Pro Forma Balance Sheet Shows That Total Assets

question 66

Multiple Choice

If the pro forma balance sheet shows that total assets must increase by $400,000 while retaining a debt-equity ratio of.75 then:

• A)Debt must increase by $300,000
• B)Equity must increase by the full $400,000
• C)Debt must increase by $171,429
• D)Equity must increase by $100,000

---

Definitions:

Sensorimotor

The sensorimotor stage is a phase of development in which infants learn about the world through their sensory experiences and motor activities.

Formal Operational

A stage in Jean Piaget's theory of cognitive development, typically starting around age 12, where individuals develop the ability to think abstractly and critically.

Schaie's Perspective

Refers to the theoretical framework proposed by K.Warner Schaie regarding the sequential stages of cognitive development throughout the adult lifespan.

Cognitive Development

Refers to the process by which individuals acquire and develop the ability to think, reason, and understand over the course of their lives.