If total equity decreased by RO10,00oo, then, to balance the accounting equation Select one a. Equity must have decreased by R0.10,000. O b Liabilities must have decreased by R.O.10,000. c. Assets must have decreased by R.O.10,000 O d. Assets must have increased by R.O.10,000.

If total equity decreased by RO10,00oo, then, to balance the accounting equation Select one a. Equity must have decreased by R0.10,000. O b Liabilities must have decreased by R.O.10,000. c. Assets must have decreased by R.O.10,000 O d. Assets must have increased by R.O.10,000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 17MC: If equity equals $100,000, which of the following is true? A. Assets exceed liabilities by $100,000....

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Question

If total equity decreased by RO10,00oo, then,
to balance the accounting equation
Select one
a. Equity must have decreased by R0.10,000.
O b Liabilities must have decreased by R.O.10,000.
c. Assets must have decreased by R.O.10,000
O d. Assets must have increased by R.O.10,000.

Expert Solution

Step 1

Total equity + Total liabilities = Total assets

- RO 10,000 + 0 = - RO 10,000

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