If the Assets of a Company Increase by $55,000 During

question 78

Multiple Choice

If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year,then the change in equity of the company during the year must have been:

• A)An increase of $80,000.
• B)A decrease of $80,000.
• C)An increase of $30,000.
• D)A decrease of $30,000.
• E)An increase of $25,000.

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Definitions:

Annual Dividend

The total amount of dividends a company distributes to its shareholders over one year.

Dividend Growth Rate

Yearly percent growth rate in the dividends paid by a company.

Rapid Development

A business or technology strategy focusing on accelerating the design and development process to bring products or software to market quicker.

Annual Dividend

A recurring distribution of a portion of a company's earnings, declared by the board of directors, to its shareholders every year.