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

question 71

Multiple Choice

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

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Definitions:

Peak Demand Period

The time frame when the demand for a product or service reaches its highest point.

Pricing Decisions

These are determinations made by businesses about how much to charge for their products or services, influenced by costs, demand, and competitive factors.

Profitability

The ability of a business to earn a profit, which is the surplus remaining from revenue after all costs are deducted.

Dual Facilities

Dual facilities refer to the strategy of maintaining two or more locations for production, storage, or business operations to enhance capacity, flexibility, or geographic reach.

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