Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 3 - The Accounting Information System - Self-Test Questions: 4

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.
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