Answering Exams

If the total liabilities of a business decrease by $5000 what will be the effect on total asset?

If the total liabilities of a business decrease by $5000 what will be the effect on total asset?

(assuming the amount of capital remain same)

A. Remain constant
B. Decrease by $5000(Correct)
C. Increase by $5000
D. Increase by $10,000

 

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