If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:
A) Increased $22,000.
B) Decreased $22,000.
C) Increased $89,000.
D) Decreased $156,000.
E) Increased $156,000.

Question

Quizplus · Accepted Answer

The increase in assets ($89,000) minus the increase in liabilities ($67,000) equals $22,000. This means that the equity in the business has increased by $22,000.

If the Assets of a Business Increased $89,000 During a Period