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

question 43

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)$20,000 increase
• C)$25,000 increase
• D)$30,000 increase

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Definitions:

Indirect Approach

A communication strategy that presents supporting details first, leading up to the main point or request, often used to soften the impact of negative news.

Main Idea

The central or most important thought, concept, or argument that is being conveyed in a text or discourse.

Request For Action

A directive or plea issued to prompt someone to take a specific action or make a decision.

Expression Of Appreciation

A statement or gesture showing gratitude or acknowledgment of others' efforts or achievements.