Total Liabilities Increase by $7,000

question 44

Multiple Choice

Total liabilities increase by $7,000.How is the accounting equation affected?

• A) Either assets have increased by $7,000, or owner's equity has decreased by $7,000.
• B) Assets have decreased by $7,000.
• C) Assets and owner's equity have each decreased by $3,500.
• D) Owner's equity has increased by $7,000.

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Definitions:

Sperling's Experiment

A psychological experiment conducted by George Sperling that demonstrated the existence of visual sensory memory.

Implicit Memory

Memory that influences thoughts and behaviors without conscious awareness, such as procedural memory for tasks.

Explicit Memory

A type of long-term memory involving conscious recollection of factual information, previous experiences, and concepts.

Declarative Memory

The type of long-term memory that involves the capacity to consciously recall facts, knowledge, and experiences.