During the year,the liabilities of a company decreased by $32 034 and the assets decreased by $16 035.Consequently the owners' equity must have:
A) decreased by $15 999
B) increased by $15 999
C) increased by $48 069
D) decreased by $48 069.

Question

Quizplus · Accepted Answer

According to the accounting equation (Assets = Liabilities + Owners' Equity), if liabilities decrease by $32,034 and assets decrease by $16,035, the owners' equity must increase by the difference, which is $15,999.

During the Year,the Liabilities of a Company Decreased by $32