If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period,what is the change in the owner's equity amount?
A)Increase of $2,000
B)Decrease of $2,000
C)Increase of $10,000
D)Decrease of $10,000

Question

Quizplus · Accepted Answer

The accounting equation states that Assets = Liabilities + Owner's Equity. If assets increased by $8,000 and liabilities increased by $6,000, the difference of $2,000 must be an increase in owner's equity to balance the equation.

If Total Liabilities Increased by $6,000 and the Assets Increased