If the Liabilities of a Business Increased $75,000 During a Period

question 191

Multiple Choice

If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:

• A) Decreased $105,000.
• B) Decreased $45,000.
• C) Increased $105,000.
• D) Increased $45,000.
• E) Increased $30,000.

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Definitions:

Rational Bidders

Participants in an auction or bidding process who make decisions based on logic and self-interest, aiming to maximize their utility or benefit.

English Auction

A public sales process where ascending bids are placed for a specific item, with the highest bid at the end winning the item.

Rational Bidders

Individuals or entities that make bid decisions in auctions based on an assessment of value, aiming to maximize their utility.

Vickrey Auction

A sealed-bid auction where the highest bidder wins but pays the price bid by the second-highest bidder.