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If total liabilities increase by $5,000 then

A. assets decrease by $5,000.
B. stockholders' equity increase by $5,000.
C. assets increase by $5,000, or stockholders' equity decrease by $5,000.
D. assets and stockholders' equity each increase by $2,500.

Respuesta :

hyderali230

Answer:

C. assets increase by $5,000, or stockholders' equity decrease by $5,000.

Explanation:

Using Accounting Equation

        Asset   =  Equity  + Liabilities

A.      -5000                       +5000  ( Equation is not balanced )

B.                        +5000     +5000  ( Equation is not balanced )

C.      +5000                       +5000  ( Equation is balanced )

                           -5000     +5000  ( Equation is balanced )

D.      +2500      +2500     +5000  ( Equation is not balanced )

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