A few days ago
Accounting?
If the Asset decease by 20000, and the Liabilities decrease by 25000, what will the Owner’s Equity be?
Top 2 Answers
A few days ago
Favorite Answer
The basic accounting equations is
ASSETS = LIBILITIES + EQUITY
So, if you decrease the left side of the equation by 20K, the right side must also decrease overall by 20K. The simplest change would be for liabilities or equity to decrease by the same 20K. But that didn’t happen here.
Since liabilities decreased by 25K (or 5K too much), the equity term must balance this out. The only way to make this happen is for equity to have increased. So speaking only in terms of what changed;
-20 = -25 + 5
Thus, Owner’s Equity increased by 5000.
0
A few days ago
increased by 5,000 because assets = liabilites+owner’s equity so (20,000)=(25000)+5000
0
- Academic Writing
- Accounting
- Anthropology
- Article
- Blog
- Business
- Career
- Case Study
- Critical Thinking
- Culture
- Dissertation
- Education
- Education Questions
- Essay Tips
- Essay Writing
- Finance
- Free Essay Samples
- Free Essay Templates
- Free Essay Topics
- Health
- History
- Human Resources
- Law
- Literature
- Management
- Marketing
- Nursing
- other
- Politics
- Problem Solving
- Psychology
- Report
- Research Paper
- Review Writing
- Social Issues
- Speech Writing
- Term Paper
- Thesis Writing
- Writing Styles