How is the accounting equation affected


Total Liabilities decrease by $7,000. How is the accounting equation affected? answer A, B, C or D.

a) Assets must have increased by $7,000 or owner's equity must have decreased by $7,000

b) Assets must have decreased by $7,000

c) Assets and owner's equity must have each decreased by $3,500

d) Owner's equity must have increased by $7,000

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Accounting Basics: How is the accounting equation affected
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