If the Liabilities of a Company Increased $74,000 During a Period

question 8

Multiple Choice

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

• A) None of the above.
• B) Assets would have decreased $19,000.
• C) Assets would have increased $55,000.
• D) Assets would have decreased $55,000.
• E) Assets would have increased $19,000.

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Definitions:

Free Energy

The portion of a system's energy that is able to perform work when temperature and pressure are uniform throughout the system.

Concentration Gradient

A concentration gradient is a variation in the concentration of a substance across a space or a membrane, leading to the movement of particles from an area of higher concentration to an area of lower concentration.

Expend Energy

The act of using biological or mechanical power for physical activities, processes, or to accomplish tasks.

Cell

The basic structural and functional unit of life, which consists of living material enclosed by a membrane.