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If Total Liabilities Increased by $10,000 and the Assets Increased

Question 2

Multiple Choice

If total liabilities increased by $10,000 and the assets increased by $10,000 during the accounting period, what is the change in the owner's equity amount?


A) No effect on owner's equity
B) Decrease of $10,000
C) Increase of $20,000
D) Decrease of $40,000

Correct Answer:

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