If the liabilities of a company increased $76,000 during a period of time and equity in the company decreased $20,000 during the same period, what was the effect on the assets?
A. Assets would have decreased $56,000.
B. Assets would have increased $56,000.
C. Assets would have decreased $96,000.
D. Assets would have increased $96,000.
E. None of the above.
Answer: B
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