If Total Assets Decreased by $30,000 During a Specific Period

question 96

True/False

If total assets decreased by $30,000 during a specific period and stockholder's equity decreased by $35,000 during the same period, the period's change in total liabilities was an $65,000 increase.

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Definitions:

Finished Goods

Items that have been fully produced but are still awaiting sale or distribution to buyers.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all units available for sale during the period.

Conversion Activities

Activities in manufacturing that convert raw materials into finished goods.

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all inventory items.