If Total Liabilities Increased by $25,000 and Shareholders' Equity Increased

question 37

Multiple Choice

If total liabilities increased by $25,000 and shareholders' equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A) $20,000 increase
• B) $25,000 increase
• C) $30,000 increase
• D) $20,000 decrease

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