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

question 116

Multiple Choice

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

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

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Definitions:

Social Desirability

A tendency of respondents to answer questions in a manner that will be viewed favorably by others, often leading to overreporting of "good" behavior or underreporting of "bad" behavior.

Reactivity

The degree to which the process of measurement itself affects the measurement and the subject's behavior.

Social Desirability

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, which can bias survey and research results.

Selection Bias

A distortion in statistical analysis resulting from the method of collecting samples, where the sample obtained is not representative of the population intended to be analyzed.