Total liabilities decreased

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Reference no: EM131289337

1. If assets increased by $8,000 and the total liabilities decreased by $2,000 during the accounting period, what is the change in the owner’s equity amount?

A. increase of $2,000

B. decrease of $2,000

C. increase of $10,000

D. decrease of $10,000

2. Paul invested cash in his new business. What effect will this have?

A. Increase an asset and increase a liability

B. Decrease an asset and increase a liability

C. Increase an asset and increase owner's equity

D. Increase an asset and decrease owner's equity

Reference no: EM131289337

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