If Liabilities Increase $120,000 During a Given Period and Shareholders

question 110

Multiple Choice

If liabilities increase $120,000 during a given period and shareholders' equity decreases $25,000 during the same period,assets must:

• A) decrease $145,000
• B) increase $145,000
• C) increase $95,000
• D) decrease $95,000

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Definitions:

GDP Deflator

A metric for assessing the price rates of all freshly created, domestic final goods and services in an economy.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by an economy in real terms.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of foreign trade on an economy's GDP.

National Income

National Income is the total value of all goods and services produced by a country over a specific period, reflecting the economic strength and standard of living in the country.