Assuming No Other Changes Except a Decrease in Assets of $20,000

question 37

Multiple Choice

Assuming no other changes except a decrease in assets of $20,000, increase in liabilities of $10,000, and expenses of $60,000, by how much did owners' equity increase or decrease and what were revenues for the period?

• A) Owners' equity increased $30,000; revenues were $90,000
• B) Owners' equity decreased $30,000; revenues were $30,000
• C) Owners' equity increased $10,000; revenues were $70,000
• D) Owners' equity decreased $10,000; revenues were $70,000

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Definitions:

Methanol

A one-carbon alcohol, CH3OH, used as an industrial solvent, antifreeze, fuel, and as a precursor to other chemicals.

Trans-1-Iodo-4-Methylcyclohexane

A chemical compound featuring a cyclohexane ring with iodine and a methyl group attached in a trans configuration, indicating they are on opposite sides of the ring.

Rearrangement

A chemical reaction in which the structure of a molecule is rearranged to form a new molecule.

Expected Product

The outcome that is predicted to result from a chemical reaction under specified conditions, based on the reactants and the reaction mechanism.