At the beginning of the fiscal year, the balance sheet showed assets of $1,364 and stockholders' equity of $836. During the year, assets increased $74 and liabilities decreased $38. Liabilities at the end of the year totaled:
A) $490
B) $528
C) $836
D) $910

Question

Quizplus · Accepted Answer

At the beginning of the year, liabilities = assets - stockholders' equity = $1,364 - $836 = $528. During the year, liabilities decreased by $38, so the end-of-year liabilities = $528 - $38 = $490.

At the Beginning of the Fiscal Year, the Balance Sheet