If the Assets of a Business Increased $89,000 During a Period

question 50

Multiple Choice

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

• A) Increased $22,000.
• B) Decreased $22,000.
• C) Increased $89,000.
• D) Decreased $156,000.
• E) Increased $156,000.

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Definitions:

Health Insurance Company

A firm that offers plans and policies that cover the costs of medical care, including treatments, surgeries, and sometimes prescription drugs.

Drawer

A sliding storage compartment that is part of a piece of furniture such as a cabinet or desk.

Company Asset

Resources owned by a company that have value and can be used to meet its financial obligations, including both physical assets (like buildings) and intangible assets (like patents).

Money Owed

Financial liabilities or debts that a person or organization is required to pay to another party.