If the liabilities of a business increased RM45,000 during a period of time and the owner's equity in the business decreased RM15,000 during the same period, the assets of the business must have: 1. Decreased RM60,000 2. Increased RM30,000 3. Increased RM15,000 4. Decreased RM30,000

If the liabilities of a business increased RM45,000 during a period of time and the owner's equity in the business decreased RM15,000 during the same period, the assets of the business must have: 1. Decreased RM60,000 2. Increased RM30,000 3. Increased RM15,000 4. Decreased RM30,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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Question

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Please explain the correct approach for solving this general accounting question.

If the liabilities of a business increased
RM45,000 during a period of time and the
owner's equity in the business decreased
RM15,000 during the same period, the
assets of the business must have:
1. Decreased RM60,000
2. Increased RM30,000
3. Increased RM15,000
4. Decreased RM30,000

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