If total assets increase,then either liabilities or shareholders' equity also must increase.

Name: If total assets increase,then either liabilities or shareholders' equity also must increase.
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Question

Quizplus · Accepted Answer

This is true based on the accounting equation where Assets = Liabilities + Shareholders' Equity. If assets increase, then one or both of the right-hand side components (liabilities and shareholders' equity) must also increase to balance the equation.

If Total Assets Increase,then Either Liabilities or Shareholders' Equity Also