If total liabilities decreased by $60000 and owner's equity increased by $30000 during a period of time then total assets must change by what amount and direction during that same period?
A) $90000 decrease
B) $30000 decrease
C) $30000 increase
D) $90000 increase

Question

Quizplus · Accepted Answer

The decrease in liabilities ($60,000) and the increase in owner's equity ($30,000) net to a decrease in total assets of $30,000, as assets = liabilities + owner's equity.

If Total Liabilities Decreased by $60000 and Owner's Equity Increased