If Total Liabilities Increased by $25,000 During a Period of Time

question 95

Multiple Choice

If total liabilities increased by $25,000 during a period of time and stockholders' equity decreased by $9,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n)

• A)$34,000 decrease.
• B)$16,000 decrease.
• C)$16,000 increase.
• D)$34,000 increase.

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Definitions:

Financing

The process of providing funds for business activities, making purchases, or investing, through loans, equity investments, or other means.

Maturity Stage

A phase in the product life cycle or organization's development characterized by stable and consistent growth or performance.

Entrepreneurial Firms

Businesses characterized by innovative strategies and practices, often aiming to meet a market need by developing or offering new products, services, or technologies.

Professional Management Skills

The expertise, techniques, and competencies necessary for effectively managing an organization, including leadership, strategic planning, and decision-making.