> #finance , #accounting > If total assets increase by $20000and liabilities increase by $12,000, the capital will ?
Anonymous
Mar 12

If total assets increase by $20000and liabilities increase by $12,000, the capital will ?

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Mar 12
increase by $8,000.

This can be calculated using the accounting equation:

Assets = Liabilities + Capital

If total assets increase by $20,000 and liabilities increase by $12,000, then the change in capital can be calculated as follows:

$20,000 = $12,000 + Change in Capital
Change in Capital = $20,000 - $12,000
Change in Capital = $8,000

Therefore, the capital will increase by $8,000.
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