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:

Pyroclastic Flows

Fast-moving currents of hot gas and volcanic materials that flow down the sides of a volcano during an eruption.

Lateral Blast

A volcanic eruption or explosion that is directed sideways rather than vertically, often capable of devastating areas around a volcano.

Eruption Column

A vertical column of volcanic ash and gas ejected into the atmosphere during a volcanic eruption.

Volcanic Dome

A rounded volcanic feature created by slow-moving or viscous magma that piles up near a vent instead of flowing away.