If the Liabilities of a Company Increased $92,000 During a Period

question 52

Short Answer

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period,did the assets of the company increase or decrease and by what amount?

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Definitions:

Labor Costs

Expenses associated with compensating the workforce, including wages, salaries, benefits, and related taxes paid by an employer for the work done by employees.

Total Costs

The total of variable and fixed expenses associated with the creation of goods or services.

Wage Rates

Refers to the fixed amount of compensation paid to employees for their labor, typically expressed per hour, day, or piece produced.

Labor Demand

This represents the total amount of workers that employers are willing and able to hire at a given wage rate in a given time period.