Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 16 - No. 31)
If a company's assets increase by $10,000 and its liabilities increase by $3,000, how will owner's equity change?
Increase by $7,000
Decrease by $7,000
Increase by $13,000
Decrease by $13,000
Explanation
Owner's equity is calculated by Assets - Liabilities. Therefore, the change is $10,000 - $3,000 = $7,000 increase.
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