Assets Amount to $35,000 at the Beginning of the Period

question 37

Multiple Choice

Assets amount to $35,000 at the beginning of the period and $40,000 at the end of the period.Liabilities amount to $10,000 at the beginning of the period and $20,000 at the end of the period.What is the amount of the change and the direction of the change in owners' equity for the period?

• A)Increase of $15,000
• B)Decrease of $10,000
• C)Increase of $5,000
• D)Increase of $10,000
• E)Decrease of $5,000

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Definitions:

Inflation

The speed at which the overall price level for goods and services increases, leading to a decrease in buying power.

Corporate Bond

A debt security issued by corporations to raise capital, with the promise to pay back the principal along with interest.

Ownership Right

The legal entitlement to use, control, or dispose of property, assets, or resources as the owner sees fit.

Future Profits

The anticipated financial gains that a business expects to earn in future periods from its operations.