Company liablity of the year

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A company began the year with Assets of $100,000, Liabilities of $20,000 and Stockhoder’s equity of $80,000. During the year Assets increaseds $55,000 and stockhoder’s equity increased $20,000 What was the change in Liabilities for the year? a) Increase of $75,000 b) Increase of $35,000 c) Decrease of $75,000 d) Decrease of $35,000

  • 10 years ago
1) Assets = liabilities + equity 100000 = 20000 + 80000 155000 = 55000 + 100000 Hence
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