If Total Liabilities Decreased by $60000 and Owner's Equity Increased

question 64

Multiple Choice

If total liabilities decreased by $60000 and owner's equity increased by $30000 during a period of time then total assets must change by what amount and direction during that same period?

• A) $90000 decrease
• B) $30000 decrease
• C) $30000 increase
• D) $90000 increase

---

Definitions:

Consulting Firm

A professional service organization that provides expert advice to businesses and organizations across a diverse range of industries and sectors.

Service Company

A business that provides intangible products or services to customers or clients, as opposed to selling physical goods.

Purchasing Cycle

A sequence of steps or procedures undertaken by a business to acquire goods or services from suppliers.

Merchandising Company

A business that purchases finished products and sells them to consumers without changing the physical form of the goods.