Asked by
Jacob Zolkosky
on Oct 16, 2024
Verified
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 $93,000.
D) Assets would have decreased $93,000.
E) None of the above.
Assets
Economic resources owned by a business or individual that are expected to bring future benefits.
Liabilities
Monetary liabilities or dues that a company or person has to pay back to lenders.
Equity
The value that would be returned to a company's shareholders if all of the assets were liquidated and all of the debts were paid off.
- Familiarize oneself with the association among assets, liabilities, and equity as demonstrated in the accounting equation.
Verified Answer
CR
Learning Objectives
- Familiarize oneself with the association among assets, liabilities, and equity as demonstrated in the accounting equation.
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