Assuming No Other Changes Except A Decrease In Assets Of $20,000, Increase In Liabilities Of $10,000, And Expenses Of $60,000
The Correct Answer of this Multiple Choice Question (MCQ) is (A) Owners' equity increased $30,000; Revenues Were $90,000 Explanation Of This Short Question: From Accounting Equation , we find change in Owner’s Equity and from owner’s equity formula, we find Revenues for the period (Assuming No Other Changes Take Place). Assets = Liabilities + Owner’s Equity - Expenses -$20000 = $10000 + Change In Owner’s Equity - $60000 Change In Owner’s Equity = -$20000 - $10000 + $60000 = $30000 Increase To calculate Revenues , we assume no other changes take place, so we have: Net Income = Owner’s Equity Revenues - Expenses = Owner’s Equity Revenues - $60000 = +$3000 Revenues = +$30000 + $60000 ...