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:

Disposal Of A Segment

The act of selling, disposing of, or eliminating a certain portion or division of a company's operations.

Income Statement

A financial report showing the company’s revenues, expenses, and profits over a specific period of time.

Administrative Expense

Costs related to the general operation of a business that are not directly tied to producing goods or services, such as salaries of office staff and utilities.

Other Expense

Expenses that cannot be traced directly to operations.