On January 1, 2014, Total Assets for Liftoff Technologies Were

question 22

Multiple Choice

On January 1, 2014, total assets for Liftoff Technologies were $125,000; on December 31, 2014, total assets were $145,000. On January 1, 2014, total liabilities were $110,000; on December 31, 2014, total liabilities were $115,000. What are the amount of the change and the direction of the change in Liftoff Technologies shareholders' equity for 2014?

• A) decrease of $15,000
• B) increase of $15,000
• C) increase of $30,000
• D) decrease of $30,000

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Definitions:

Materials

The physical components used in the production of goods, including both raw inputs and manufactured parts.

Processing Department

A section of a manufacturing facility where a specific type of processing or assembly operation is performed on products.

Ending Inventory

Ending Inventory refers to the total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

Conversion Costs

The sum of labor and overhead costs incurred to convert raw materials into finished goods.