If total liabilities increased by $25,000 and shareholders' equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?
A) $20,000 decrease
B) $25,000 increase
C) $30,000 increase
D) $20,000 increase

Question

Quizplus · Accepted Answer

The increase in total assets is the sum of the increase in liabilities ($25,000) and the increase in shareholders' equity ($5,000), totaling a $30,000 increase.

If Total Liabilities Increased by $25,000 and Shareholders' Equity Increased