If Total Liabilities Increased By $8,000, Then | MCQ Question Answer
The correct answer of this MCQ is (c), as to equalize Accounting Equation i.e., Assets = Liabilities + Stockholders’ Equity ), we either have to increase total assets by $8000 or we have a choice to decrease stockholders’ equity by $8000. (a). To prove it, firstly, we choose “Assets must be increased by $8000”. By applying accounting equation, we get: Assets = Liabilities + Stockholders’ Equity Change In Assets = Change In Liabilities + Change In Stockholders’ Equity +$8000 = +$8000 + Change In Stockholders’ Equity +$8000 = +$8000 + 0 Change In Stockholder...