If the Assets of a Company Increase by $55,000 During

Multiple Choice

If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year, then the change in equity of the company during the year must have been:

A) A decrease of $80,000.
B) An increase of $25,000.
C) An increase of $30,000.
D) A decrease of $30,000.
E) An increase of $80,000.