Asked by ariana marie on May 10, 2024
Verified
If total liabilities decreased by $46,000 during a period of time and owner's equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets would be a
A) $106,000 increase
B) $14,000 increase
C) $14,000 decrease
D) $106,000 decrease
Owner's Equity
The amount of ownership an individual or entity has in a company, represented by the assets minus liabilities and often seen as the owner's claim against the company's assets.
Total Liabilities
The combined amount of debts and obligations that a company owes to outside parties at any given time.
Total Assets
The sum of all assets owned by a business, including both current and long-term assets, which represents the total resources available to the company.
- Study the consequences of multiple transactions on the stability of the accounting equation.
Verified Answer
Learning Objectives
- Study the consequences of multiple transactions on the stability of the accounting equation.
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