If the Liabilities of a Company Increased $74,000 During a Period

question 219

Multiple Choice

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

• A)Assets would have increased $55,000.
• B)Assets would have decreased $55,000.
• C)Assets would have increased $19,000.
• D)Assets would have decreased $19,000.
• E)None of thesE.Assets = Liabilities + Stockholders' Equity

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Definitions:

Learning Theory

A framework that explains how individuals acquire knowledge, skills, attitudes, or behaviors through experience, conditioning, or practice.

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Connected or linked with something else in relation to memory, ideas, or phenomena.

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A form of learning that involves the use of mental processes and understanding to acquire knowledge and skills.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the consequences of actions.