1. If total liabilities decreased by $25,000 during a period of time and owner's equity increased by $30,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is ________.
$65,000 increase
$5,000 decrease
$5,000 increase
$65,000 decrease
2. A business paid $9,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to ________.
increase one asset, decrease another asset
increase an asset, increase a liability
decrease an asset, decrease a liability
increase an asset, increase owner's equity
3. If total assets decreased by $47,000 during a period of time and owner's equity increased by $24,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is ________.
$23,000 increase
$47,000 decrease
$71,000 decrease
$71,000 increase
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