Practice Problem If total liabilities decreased by $15,000 and owner's equity decreased by $10,000 during a period of time, then total assets must change by what amount and direction during that same period? a. $25,000 decrease b.$5,000 decrease c. $5,000 increase d. $25,000 increase Practice Problem The accounting equation for XYZ Enterprises is as follows: Assets =Liabilities Owner's Equity $120,000 =$60,000 +$60,000 If Quattro purchases office equipment on account for $15,000, the accounting equation will change to Assets = Liabilities + Owner's Equity a. $120,000 = $60,000 + $60,000 b. $135,000 = $60,000 + $75,000 C. $135,000 = $67,500 + $67,500 d. $135,000 = $75,000 + $60,000