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If Total Liabilities Decreased by $25,000 and Owner's Equity Increased

Question 15

Multiple Choice

If total liabilities decreased by $25,000 and owner's 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) $20,000 decrease
B) $20,000 increase
C) $25,000 increase
D) $30,000 increase

Correct Answer:

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