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Star Homes Company Just Recorded a Transaction in Its Books

Question 121

Multiple Choice

Star Homes Company just recorded a transaction in its books.If this transaction increased the total liabilities by $10,000,then ________.


A) assets must increase,or equity must decrease by $10,000
B) either assets or equity must decrease by $10,000
C) both assets and equity must each decrease by $5,000
D) assets must decrease by $10,000

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