Which of the following statements is NOT true?
A) If the total assets owned by a business total $110 000 and owners' equity totals $30 000,liabilities total $80 000.
B) If total assets decreased by $30 000 during a specific period and owners' equity decreased by $35 000 during the same period,the period's change in total liabilities was a $65 000 increase.
C) If total assets decreased by $50 000 during a specific period and owners' equity decreased by $40 000 during the same period,the period's change in total liabilities was a $10 000 decrease.
D) If total assets increased by $75 000 during a specific period and liabilities decreased by $10 000 during the same period,the period's change in total owners' equity was an $85 000 increase.

Question

Quizplus · Accepted Answer

The correct answer is B because the change in total liabilities is calculated as the change in total assets minus the change in owners' equity. In this case, the change in total assets is a $30,000 decrease and the change in owners' equity is a $35,000 decrease, so the change in total liabilities is a $65,000 increase.

Which of the Following Statements Is NOT True