If the Liabilities of a Company Increased $92,000 During a Period

question 52

Short Answer

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period,did the assets of the company increase or decrease and by what amount?

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Definitions:

Cost of Goods Sold

Costs directly linked to the production of goods a company sells, such as materials and labor.

Direct Materials Purchases

The total cost of raw materials bought that are intended to be used in the manufacture of products.

Factory Overhead

All indirect costs incurred during the manufacturing process, excluding direct labor and direct materials.

Capital Expenditures Budget

A plan for a company's spending on fixed assets, such as buildings or equipment, over a period.