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 decrease shareholders equity because the net assets would decrease. It would increase shareholders' equity because liabilities add to the net assets. It would not affect shareholders' equity because liabilities are a separate aspect of the balance sheet.

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 decrease shareholders' equity because the net assets would decrease. QItwould increase shareholders' equity because liabilities add to the net assets. It would not affect shareholders' equity because liabilities are a separate 1. aspect of the balance sheet