If the Assets of a Business Increased $15,000 During a Period

question 12

Multiple Choice

If the assets of a business increased $15,000 during a period of time and its equity decreased $4,000 during the same period,liabilities in the business must have:

• A)Increased $11,000
• B)Decreased $11,000
• C)Increased $19,000
• D)Decreased $19,000
• E)Increased $61,000

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Definitions:

Salary Expense Account

An account that tracks the total amount paid to employees for services rendered during a specific period.

Credit Entries

Accounting entries that increase liabilities or decrease assets, typically reflecting incoming payments or the granting of credit to a customer.

Transactions

Financial activities or events that affect the financial position of the company.

Owner's Equity Accounts

Accounts representing the owner’s claim or interest in the business assets after all liabilities have been deducted.