hold Force Once started, this test must be completed in one sitting, Do not leav

Question

hold Force Once started, this test must be completed in one sitting, Do not leave the test before dicking Sav Remaining Time: 52 minutes, 59 seconds. *Question Completion Status lities nge by ,000 an t Moving to another question will save this response. Question 11 s/ e after rs equit hat amo total liabilities increase by $90,000 then, which of the following is possible O ast ckholden' equity increase by S90,00?. o b. assets increase by $90,000, or stockholders' equity decrease by $90,000 ??.assets decrease by S90,000. o d. assets and stockholders' equity each increase by $45,000 Oe None of the abore d Stoc stions ar eased by ring the s ial Man Moving to another question will save this response iS Now vables in hal operatin

Explanation / Answer

Answer is b. Assets increases by $90000 or stockholder's equity decrease by $90000.

Explanation:

Accounting equation is as follows:

Assets = Liabilities +Stockholders' Equity

WHen the total liabilities is increased, then either the stockholder's equity will get fall or assets will increase by the same amount to balance the equation.

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