I need the correct answer to this financial accounting problem using the standard accounting approach. If total assets increased by $18,000 during aperiod of time and owner's equity decreasedby $7,000, what is the amount and direction(increase or decrease) of the change in totalliabilities for the period?

Step 1: Definition of Liabilities Change Based on Accounting Equation The change in liabilities…

Answered: If total assets increased by $18,000…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter16: Statement Of Cash Flows: Another Look

Section: Chapter Questions

Problem 18P

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If total assets increased by $18,000 during a period of time and owner's equity decreased by $7,000, what is the amount and direction (increase or decrease) of the change in total liabilities for the period?