If During the Current Year,liabilities of Hayden Travel Decreased by $50,000

question 35

Multiple Choice

If during the current year,liabilities of Hayden Travel decreased by $50,000 and owners' equity increased by $75,000,then:

• A)Assets at the end of the year total $125,000.
• B)Assets at the end of the year total $25,000.
• C)Assets increased during the year by $25,000.
• D)Assets decreased during the year by $125,000.

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Definitions:

Finished Goods

Products that have completed the manufacturing process but have not yet been sold to customers.

Job Cost System

An accounting system used to track costs specifically by job or order, collecting material, labor, and overhead costs.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold.

Work in Process

A stage in the production process where goods are partially completed and will require further work before they are ready for sale.