1. If total liabilities increased by 31,000 during a period of time and equity decreased by 9,000 during the same period, then the amount and direction of the periods change in total assets is a(n)

   	A.	22,000 decrease.
   	B.	31,000 increase.
   	C.	22,000 increase.
   	D.	40,000 increase.

2.

1. Ashtons Goods purchases $100,000 of inventory during the year, has beginning of the year inventory of $15,000, and sells $85,000 of inventory during the year for $150,000. What is the companys inventory balance to be reported on its balance sheet at year end?

   	A.	$15,000
   	B.	$30,000
   	C.	$70,000
   	D.	$65,000