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

Question 3

Multiple Choice

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?


A) $30,000 increase.
B) $20,000 decrease.
C) $25,000 increase.
D) $20,000 increase.

Correct Answer:

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