During the current year, the assets of Wheatley's increased by $362,000, and the liabilities increased by $260,000. The equity in the business must have:
A) Decreased by $102,000.
B) Decreased by $622,000.
C) Increased by $102,000.
D) Increased by $622,000.

Question

Quizplus · Accepted Answer

The equity can be calculated using the accounting equation: Assets = Liabilities + Equity. 
If the assets increased by $362,000 and the liabilities increased by $260,000, then: 
Equity = Assets - Liabilities 
Equity = $362,000 - $260,000 
Equity = $102,000 
Therefore, the equity in the business must have increased by $102,000.

During the Current Year, the Assets of Wheatley's Increased by $362,000