Respuesta :
If the liabilities of a business increased $75,000 during a period of time.
The assets of the business must have $ 45,000 increase.
A liability is a legal obligation of a company to third party creditors. These include accounts payable, bills payable, and bank obligations. All companies must take responsibility in order to function and grow. A balanced relationship between debt and equity forms a stable foundation for a company.
Calculating the problem:
Let beginning total assets=$200,000
Beginning equity be $100,000
Beginning liabilities be $100,000
Hence ending liabilities=(100,000+75000)
=$175,000
Ending equity=(100,000-30,000)
=$70,000
Hence ending assets=(175,000+70,000)
=$245,000
Hence increase in assets=(245,000-200,000)
=$45,000
What is Business Liability?
A company's obligation to pay money to another person or company in the future is called a liability. This means that the company cannot make money in the future. Liabilities are how a company gets money and are different from equity.
Why are liabilities important?
Debt is an important aspect of supply and demand in the economy. The manufacturer supplies the product and the consumer enters into a liability contract to pay for the product. This allows for open cash flow and a continuous earnings cycle.
Learn more about liability:
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