If the Liabilities of a Business Increased $86,000 During a Period

question 21

Essay

If the liabilities of a business increased $86,000 during a period of time and equity in the business decreased $23,000 during the same period, enter the appropriate amounts reflecting this activity in the accounting equation format shown below.
$$\begin{array} { | c | c | c | } \hline \text { Assets } = & \text { Liabilities } + & \text { Equity } \\\hline & & \\\hline\end{array}$$

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Definitions:

Decision Making

The cognitive process leading to the selection of a course of action among several alternatives.

Division Costs

Division costs pertain to the expenses associated with operating a specific department or division within a larger organization.

Division Revenue

The total amount of income generated from sales or services provided by a specific division within a company.

Profit Centers

Individual segments, departments, or divisions of a business that are responsible for generating their own revenue and profit, allowing for tracking and analysis of their financial performance separately from the overall company.