If Total Liabilities Decreased by $14 000 and Equity Increased

question 50

Multiple Choice

If total liabilities decreased by $14 000 and equity increased by $6000 over a period,then total assets must have changed by?

• A)$14 000 increase
• B)$20 000 increase
• C)$8000 decrease
• D)$8000 increase

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Definitions:

Equity Funds

Investment funds that primarily invest in stocks with the aim of achieving growth by capital gains and dividends for their investors.

Periodic Repayments

Regular payments made over time to settle a debt or loan, often consisting of both principal and interest components.

Profits

The financial gain obtained when the revenue from business activities exceeds the expenses, taxes, and costs of operation.

Insolvent

A financial state in which an individual or entity cannot meet its debt obligations as they come due, or its liabilities exceed its assets.