Answered

If the assets of a business increases $119,000 during a period of time and its liabilities increased $82,000 during the same period, equity in the business must have:An increase of $105,000.
A decrease of $45,000.
An increase of $45,000.
A decrease of $105,000.

Answer :

hyderali230

Answer:

*There is some wrong value in the question which do not make sense.

According to given information in the question answer should be as follows

A Increase of $37000

Explanation:

Accounting equation

                                      Assets     =         Equity        +       Liability

Increase in Asset        +119,000          

Increase in Liabilities                                                          +82000    

Total Impact                 119,000    =        *37000        +        82,000

Equity = 119000-82000 = 37000

Note: By searching I have found following question that might be correct

If the assets of a company increase by $75,000 and its liabilities increase by $30,000 during the same year, then the change in equity of the company during the year must have been:

An increase of $105,000.

A decrease of $45,000.

An increase of $45,000.

A decrease of $105,000.

Answer:

An increase of $45,000.

Explanation:

Accounting equation

                                      Assets     =         Equity        +       Liability

Increase in Asset        +75,000          

Increase in Liabilities                                                          +30000    

Total Impact                 75,000    =        *45000        +        30,000

Equity = 75000-30000 = 45000

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