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

question 170

True/False

If total assets decreased by $30,000 during a specific period and owner'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:

Six Months

A time frame consisting of approximately 180 days or half a year.

Drawer

The person or entity that writes or issues a check, making an order to a bank to pay a specified amount of money to the party named or to the bearer.

Midnight Deadline

A cutoff point set at 11:59 PM, often used in legal, financial, and operational contexts to mark the end of a given day or deadline.

Drawer-payor Bank

Refers to the bank upon which a check is drawn and is responsible for paying the check when it is presented.