If Assets Increase $210,000 During a Given Period and Liabilities

question 152

Multiple Choice

If assets increase $210,000 during a given period and liabilities increase $65,000 during the same period, stockholders' equity must:

• A)increase $145,000.
• B)decrease $275,000.
• C)decrease $145,000.
• D)increase $275,000.

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance, essential for budgeting and financial planning.

Marginal Costs

Marginal costs refer to the additional cost incurred by producing one more unit of a product or service.

Avoidable Costs

Costs that you get back if you shut down operations.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials or labor expenses.