If the Liabilities of a Business Increased $75,000 During a Period

question 191

Multiple Choice

If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:

• A) Decreased $105,000.
• B) Decreased $45,000.
• C) Increased $105,000.
• D) Increased $45,000.
• E) Increased $30,000.

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Definitions:

Selective Comprehension

The process by which individuals interpret information based on their existing beliefs, attitudes, or desires, often leading to misunderstanding or distortion of messages.

Stimulus Discrimination

The ability to distinguish between different stimuli, particularly in learning and behavioral contexts.

Selective Retention

The process by which individuals remember only the information that supports their beliefs or opinions, ignoring any contrary evidence.

Selective Analysis

A method of analyzing data or information where only certain aspects or variables are considered, often to support a specific hypothesis or outcome.