16. If total assets equal $270,000 and total liab Sets equal $270,000 and total liabilities equal $202,500, the total owners' equity must equal A. $472,500 B. $67,500. C. Can not be determined from the information given. D. Some other amount. 17. Which of the following is correct fa company purchases equipment for $70,000 cash? A. Total assets will increase by $70,000. B. Total assets will decrease by $70,000. C. Total assets will remain the same. D. The company's total owners' equity will decrease. 18. Which of the following is correct when a company uses cash to pay for an expense A Total assets will decrease. B. Retained earnings will decrease. C. Owners' equity will decrease. D. All three of the above statements are correct. 19. At the end of the current year, the owners' equity in Barclay Bakery is $246,000. During the year the assets of the business had increased by $120,000, and the liabilities had increased by $72,000. Owners' equity at the beginning of the year must have been: A. $198,000. B. $174,000. C. $284,000. D. $438,000. 20. Retained earnings appears on: A. The income statement. B. The balance sheet. C. The statement of cash flows. D. All three statements. 21. When making a general journal entry, there can only be one debit and one credit. True False 22. The matching concept refers to the relationship between revenues and expenses. Trye False 23. An increase in a liability is recorded by a credit; an increase in owners' equity by a debit. True False credit