If Total Liabilities Increased by $25,000 and Shareholders' Equity Increased

question 45

Multiple Choice

If total liabilities increased by $25,000 and shareholders' equity increased by $5,000 during a period of time,then total assets must change by what amount and direction during that same period?

• A)$20,000 decrease
• B)$25,000 increase
• C)$30,000 increase
• D)$20,000 increase

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Definitions:

Written Consent

Formal approval documented in writing, often required for legal or official procedures.

Interstate Commerce Commission

The Interstate Commerce Commission (ICC) was a regulatory agency in the United States responsible for enforcing federal regulations governing railroad rates and operations. It has since been dissolved and replaced by other bodies.

Anti-Competitive Nature

Behaviors or actions by companies that unfairly restrict competition and control markets.

Administrative Agency

Any government body created by the legislative branch (e.g., Congress, a state legislature, or a city council) to carry out specific duties.