If Total Assets Increased $20,000 During A Period And Total Liabilities Increased $12,000 During The Same Period, The Amount And Direction (Increase Or Decrease) Of The Change In Owner's Equity For That Period Is A(n):
The correct answer is (c). $8,000 increase., as increase in total assets (+$20000) minus increase in total liabilities (+$12000) equal to $8000 increase in Owner’s Equity during the same accounting period as it shows from the below Accounting Equation : Assets = Liabilities + Owner’s Equity +$20000 = +$12000 + Change In Owner’s Equity Change Or Increase In Owner’s Equity = +$20000 - $12000 = $8000 increase in owner’s equity in the same period