If total liabilities increased by $25,000 and shareholders' equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?

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According to the accounting equation, Assets = Liabilities + Shareholders' Equity. If liabilities increase by $25,000 and equity increases by $5,000, then assets must increase by $30,000 to keep the equation balanced.

If Total Liabilities Increased by $25,000 and Shareholders' Equity Increased