If total equity decreased by RO10,00oo, then, to balance the accounting equation Select one a. Equity must have decreased by R0.10,000. O b Liabilities must have decreased by R.O.10,000. c. Assets must have decreased by R.O.10,000 O d. Assets must have increased by R.O.10,000.

If total equity decreased by RO10,00oo, then, to balance the accounting equation Select one a. Equity must have decreased by R0.10,000. O b Liabilities must have decreased by R.O.10,000. c. Assets must have decreased by R.O.10,000 O d. Assets must have increased by R.O.10,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If total equity decreased by RO10,00oo, then,
to balance the accounting equation
Select one
a. Equity must have decreased by R0.10,000.
O b Liabilities must have decreased by R.O.10,000.
c. Assets must have decreased by R.O.10,000
O d. Assets must have increased by R.O.10,000.

Expert Solution

Step 1

Total equity + Total liabilities = Total assets

- RO 10,000 + 0 = - RO 10,000

Step by step

Solved in 2 steps

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