If during the current year,liabilities of Corbett's Store increased by $220,000 and owners' equity increased by $160,000,then:
A)Assets at the end of the year total $380,000.
B)Assets at the end of the year total $60,000.
C)Assets increased during the year by $380,000.
D)Assets decreased during the year by $60,000.

Question

Quizplus · Accepted Answer

According to the accounting equation, Assets = Liabilities + Owners' Equity. If liabilities increased by $220,000 and owners' equity increased by $160,000, then assets must have increased by $380,000 ($220,000 + $160,000). Therefore, the correct answer is C.

If During the Current Year,liabilities of Corbett's Store Increased by $220,000