At the beginning of the fiscal year, the balance sheet showed assets of $2,728 and stockholders' equity of $1,672.During the year, assets increased $148 and liabilities decreased $76. Stockholders' equity at the end of the year totaled:
A)$1,672
B)$1,744
C)$1,896
D)$2,876

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Stockholders' Equity. Initially, Liabilities = $2,728 - $1,672 = $1,056. During the year, Assets increased by $148, making them $2,876, and Liabilities decreased by $76, making them $980. Therefore, Stockholders' Equity = $2,876 - $980 = $1,896.

At the Beginning of the Fiscal Year, the Balance Sheet