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 shareholder' equity because liabititics are a separate

aspect of the belance sheet.

Oit would decrease sharcholder' equity becaves the net assets would decrease:$-$

olt would increase Shamolderi cquity becavec liabintes sedd to the net assots.