If the Liabilities of a Business Increased $75,000 During a Period

question 25

Multiple Choice

If the liabilities of a business increased $75,000 during a period of time and the stockholders' equity in the business decreased $30,000 during the same period,the assets of the business must have:

• A)Decreased $105,000.
• B)Decreased $45,000.
• C)Increased $30,000.
• D)Increased $45,000.
• E)Increased $105,000.

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Definitions:

Correlation With Causation

Correlation with causation implies mistakenly interpreting a simultaneous occurrence of events or variables as one causing the other, without evidence of a causal link.

Satellite TV

A television system in which programs are transmitted to viewers via satellite, allowing for a wide coverage area and diverse programming.

Thunderstorm

A type of storm characterized by the presence of lightning and thunder, usually accompanied by strong winds, heavy rain, and sometimes hail or tornadoes.

Correlation With Causation

The mistaken assumption that because two variables are correlated, one necessarily causes the other.