Question: tion e - 2 = Sonlitubun Learning * Carner Cerber Tradag Clallinge y Research Go Back Encepts L . P . Shareholders own the net
tion
e
Sonlitubun Learning
Carner Cerber Tradag Clallinge
y Research
Go Back
Encepts
LP
Shareholders own the net assets and residual earnings of a company. Considering this, how would an increase in company liabilities impact shareholders' equity?
It would not affect shareholders' equity because liabilities are a separate aspect of the balance sheet.
It would increase shareholders' equity because liabilities add to the net assets
It would decrease sharcholders' equity beczuse the net assets would decrease.
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