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If Total Assets Decreased By $88,000 During A Period Of Time And Owner's Equity Increased By $65,000 During The Same Period, Then...

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The correct answer of this multiple choice question is (d). $153000 decrease, as decrease in total assets (-$88000) minus increase in owner’s equity (+$65000) equal to $153000 decrease in total liabilities during the same time period. To prove it, we use Accounting Equation as shown below:         Assets             =         Liabilities                  +     Owner’s Equity       -$88000            =    Change In Liabilities    +          (+$65000) Change / Decrease In Total Liabilities = -$88000 - $65000 = $153000 decrease
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