If the assets of a business increased $15,000 during a period of time and its equity decreased $4,000 during the same period,liabilities in the business must have:
A)Increased $11,000
B)Decreased $11,000
C)Increased $19,000
D)Decreased $19,000
E)Increased $61,000

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Equity. If assets increased by $15,000 and equity decreased by $4,000, liabilities must have increased by $19,000 to balance the equation.

If the Assets of a Business Increased $15,000 During a Period