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

question 71

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 $30,000.
• D) Increased $45,000.
• E) Increased $105,000.

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Definitions:

Low-Income Families

Households earning significantly below the average income level, often facing financial hardship and limited access to resources.

Equitable

Pertains to fairness or impartiality in the distribution of benefits and burdens within society.

Marginal Cost

The extra expenditure involved in generating an additional unit of a product or service.

Social Value

The importance or benefit that something has to society, which might not be reflected in its market price, such as education or environmental protection.