If total liabilities decrease by $22,000 and owner's equity increases by $8,000 during the period, then assets must have:
A)increased $30,000.
B)decreased $30,000.
C)increased $14,000.
D)decreased $14,000.

Question

Quizplus · Accepted Answer

According to the accounting equation (Assets = Liabilities + Owner's Equity), if liabilities decrease by $22,000 and owner's equity increases by $8,000, assets must decrease by $14,000 to keep the equation balanced.

If Total Liabilities Decrease by $22,000 and Owner's Equity Increases