If Total Liabilities Increased By $14,000 During A Period Of Time And Owner's Equity Decreased By $6,000 During The Same Period Then

If Total Liabilities Increased By $14,000 During A Period Of Time And Owner's Equity Decrease
The correct answer is (d). $8000 increase, as from Accounting Equation, increase in total liabilities ($14000) minus decrease in Owner’s Equity ($6000) equal to $8000 increase in total assets during the same accounting period as shown below:

                                  Assets      =       Liabilities    +    Owner’s Equity

Change / Increase In Assets  =        +$14000    +         (-$6000)

Change / Increase In Assets  = $8000 Increase

Comments