Which of the Following Statements Is NOT True

question 18

Multiple Choice

Which of the following statements is NOT true?

• A) If total assets owned by a business total $110 000 and owners' equity totals $30 000,then liabilities total $80 000.
• B) If total assets decreased by $30 000 during a specific period and owners' equity decreased by $35 000 during the same period,the period's change in total liabilities was a $65 000 increase.
• C) If total assets decreased by $50 000 during a specific period and owners' equity decreased by $40 000 during the same period,the period's change in total liabilities was a $10 000 decrease.
• D) If total assets increased by $75 000 during a specific period and liabilities decreased by $10 000 during the same period,the period's change in total owners' equity was an
• $85 000 increase.

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Definitions:

Goods And Services

Goods are tangible items that satisfy human wants and needs, while services are intangible activities or benefits that one party can offer to another.