If Total Assets Remain the Same and Total Shareholders' Equity

question 81

Multiple Choice

If total assets remain the same and total shareholders' equity increases, liabilities will:

• A) increase by the same amount.
• B) decrease by the same amount.
• C) remain the same.
• D) increase by a different amount.
• E) decrease by a different amount.

---

Definitions:

Operating Budgets

A financial plan that estimates the expected income and expenses for a specific period in the future, often used to guide business activities.

Continuous Budgets

Budgets that are regularly updated by adding a new period as the current period is completed, facilitating constant financial planning.

Sales Budget

A financial plan that estimates the expected revenue from sales over a specific period, guiding business strategies and operations.

Sales Forecasts

Predictions about the future sales performance of a company or product, based on market analysis and historical sales data, used for planning purposes.