Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 35

For the following questions, circle the best response.

Comparison of the balance sheet of Kohl Company at the end of 2011 with its balance sheet at the end of 2010 showed that total assets had decreased by $34,500 and owners’ equity had increased by $7,500. The change in liabilities during the year was

a. a decrease of $42,000.

b. an increase of $27,000.

c. a decrease of $27,000.

d. an increase of $42,000.

e. None of the above.