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whats does it mean when a companys overall assets increased, while the liabilities increase and equity...

whats does it mean when a companys overall assets increased, while the liabilities increase and equity deacreases over the period 2019-2019

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Expert Solution

Any company's assets will either funded by debt(Liabilities) or equity(shareholders funds). If assets are increasing and Liabilities too increasing that means the assets are building up by taking debt. This led to increase in Liabilities and fall in the equity proportion.


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