# 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