Question

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

a. assets would have increased $55,000.
b. assets would have decreased $55,000.
c. assets would have increased $19,000.
d. assets would ha g

Answer 1

Change in Assets = Change in Liabilities + Change in Owner's Equity
Change in Assets = $74,000 + (-$19000) = +$55000

A is the answer