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.