One way of increasing the equity of a business is to increase a liability.

Name: One way of increasing the equity of a business is to increase a liability.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Increasing a liability means you are increasing what the business owes, which does not increase equity. Equity increases when assets increase without a corresponding increase in liabilities, or when liabilities decrease without a corresponding decrease in assets.

One Way of Increasing the Equity of a Business Is