If the liabilities of a business increased $91,000 during a period of time and the owner's equity in the business decreased $38,000 during the same period, the assets of the business must have: Multiple Choice A) Decreased $53,000 B) Decreased $129,000 C) Increased S38000 D) Increased 529,000.

If the liabilities of a business increased $91,000 during a period of time and the owner's equity in the business decreased $38,000 during the same period, the assets of the business must have: Multiple Choice A) Decreased $53,000 B) Decreased $129,000 C) Increased S38000 D) Increased 529,000.

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Description: If the liabilities of a business increased $91,000 during a period of time and the owner's equity in the business decreased $38,000 during the same period, the assets of the business must have: Multiple Choice A) Decreased $53,000 B) Decreased $129,0

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter4: Gross Income

Section: Chapter Questions

Problem 2CE

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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If the liabilities of a business increased $91,000 during a period of time and the owner's equity in the business decreased $38,000 during the same period, the assets of the business must have:

Multiple Choice

A) Decreased $53,000
B) Decreased $129,000
C) Increased S38000
D) Increased 529,000.

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