If the Liabilities of a Company Increased $74,000 During a Period

question 69

Multiple Choice

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

• A) Assets would have increased $55,000.
• B) Assets would have decreased $55,000.
• C) Assets would have increased $19,000.
• D) Assets would have decreased $19,000.
• E) None of these.

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Definitions:

Nonverbal Cues

Communication signals that do not involve words, such as body language, facial expressions, and tone of voice, which can convey emotions and attitudes.

In-Person Channel

Describes a mode of communication where individuals interact directly with each other face-to-face, allowing for immediate feedback and non-verbal cues.

Accurate Information

Data or details that are correct, precise, and free of errors, providing a reliable basis for decisions or understanding.

Planning Phase

The initial stage in a project or process where objectives are defined, and strategies are developed.