Answer
a
Work Step by Step
Since equity equals assets minus liabilities, the change in equity equals the change in assets minus the change in liabilities.
$e=-50000-(-90000)=-50000+90000=40000$
Equity increased by \$40,000.
Accounting: Tools for Business Decision Making, 5th Edition
by Kimmel, Paul D.; Weygandt, Jerry J.; Kieso, Donald E.
Published by
Wiley
ISBN 10:
1118128168
ISBN 13:
978-1-11812-816-9
Chapter 3 - The Accounting Information System - Self-Test Questions - Page 136: 4
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