Total Liabilities Increase by $7,000

question 44

Multiple Choice

Total liabilities increase by $7,000.How is the accounting equation affected?

• A) Either assets have increased by $7,000, or owner's equity has decreased by $7,000.
• B) Assets have decreased by $7,000.
• C) Assets and owner's equity have each decreased by $3,500.
• D) Owner's equity has increased by $7,000.

---

Definitions:

Federal District Court Decision

An official judgment or ruling handed down by a federal district court, the trial-level courts in the U.S. federal court system.

Distant Library

A library services system that allows users to access resources and materials remotely, often online.

Delivered Directly

The process of sending goods, messages, or services straight from the source to the intended recipient without intermediaries.

Authority Check

The process of verifying that citations in legal documents refer correctly to precedents, statutes, or regulations.