If total assets are increased, there must be a corresponding
A) increase in liabilities only.
B) increase in shareholders' equity only.
C) increase in liabilities and decrease in shareholders' equity.
D) increase in liabilities and/or increase in shareholders' equity.

Question

Quizplus · Accepted Answer

An increase in total assets must be balanced by an increase in liabilities and/or an increase in shareholders' equity to maintain the accounting equation: Assets = Liabilities + Shareholders' Equity.

If Total Assets Are Increased, There Must Be a Corresponding