During the Current Year, the Assets of Wheatley's Increased by $362,000

question 23

Multiple Choice

During the current year, the assets of Wheatley's increased by $362,000, and the liabilities increased by $260,000. The equity in the business must have:

• A) Decreased by $102,000.
• B) Decreased by $622,000.
• C) Increased by $102,000.
• D) Increased by $622,000.

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Definitions:

Owner's Equity Statement

A financial document that details changes in the equity of a business's owner(s) over a period of time.

Income Statement

A financial document that shows a company's revenues and expenses over a specific period, culminating in the net income.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a particular date, reporting assets, liabilities, and equity.

Total Assets

The sum of all resources owned by a company, valued in monetary terms.