If Total Liabilities Increased by $2,000 and the Assets Increased

question 75

Multiple Choice

If total liabilities increased by $2,000 and the assets increased by $2,000 during the accounting period,what is the change in the owner's equity amount?

• A)No effect on owner's equity
• B)Decrease of $4,000
• C)Increase of $8,000
• D)Decrease of $8,000

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Definitions:

Team

A collection of people who regularly interact to pursue common goals.

Team Members

Individuals who work together in a coordinated effort to achieve specific group objectives.

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Established standards or patterns of behavior that are accepted within a group or society.

Behaviour

Refers to the actions or reactions of an object or organism, usually in relation to the environment or surrounding.