If During The Year Total Assets Increase By $70,000 And Total Liabilities Decrease By $13,500, By How Much Did Owner's Equity Increase /Decrease? | Multiple Choice Question Answer

The correct answer of this multiple choice question (mcq) is (C) $83,500 Increase, as increase in total assets (all the resources owned by the Sole Proprietorship Business) by $70,000 plus decrease in total liabilities (all the debts payable by the business to outsiders) by $13,500 amount equal to $83,500 increase in Owner’s Equity (rights of sole owner against the assets of the sole business) during the year as shown from the below Accounting Equation:

                   Assets    =   Liabilities   +         Owner’s Equity
 
                 +70,000    =   -$13,500    +   Change In Owner’s Equity
 
Change / Increase In Owner’s Equity = +$70,000 + $13,500 = $83,500 Increase

The other options like A, B and D are wrong choices here of this multiple choice question asked.