Question

Country Homes Corporation just recorded a transaction in its books. If this transaction increased the total liabilities by $ 18 comma 000​, then​ ________.

Answer 1

Answer:

Total assets increased by  $18,000

And, equity is decreased by $18,000

Explanation:

We know that

Total assets = Total liabilities + total owners equity

This above equation is known as the accounting equation

Since in the question, it is mentioned that the transaction increased the total liabilities by $18,000 which increases the total assets by $18,000 and decreases the owner equity by  $18,000 so this above equation should be equal and balanced.