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

Question

Quizplus · Accepted Answer

The increase in total assets is equal to the sum of the increase in total liabilities ($25,000) and the increase in shareholders' equity ($5,000), which totals $30,000.

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