If the total liabilities of a business decrease by $5000 what will be the effect on total asset?

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804Active Users

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ARemain constant

BIncrease by $5000

CDecrease by $5000

DIncrease by $10,000

Correct answer

C. Decrease by $5000

Explanation

Decrease by $5000 is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

If the total liabilities of a business decrease by $5000 what will be the effect on total asset? - Answer and Explanation | Academy of Pakistan