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Accounting Equation

If liabilitie...

Question

If liabilities increase by 3,000 and equity increases by 2,000, what is the effect on assets?

A

Increases by 5000

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B

Decreases by 5000

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C

Decreases by 1000

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D

Increases by 1000

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Solution

The correct option is A
Increases by 5000

Assets increase by 5000

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