Assets totaled $24,250 and liabilities totaled $8,500 at the beginning of the year.During the year,assets decreased by $3,500 and liabilities increased by $2,800. What is the amount of the change in stockholders' equity during the year?
A)$5,750 increase
B)$700 decrease
C)$6,300 decrease
D)$550 increase

Question

Quizplus · Accepted Answer

Change in assets = Change in liabilities + Change in stockholders' equity
Change in stockholders' equity = Change in assets − Change in liabilities
= ($3,500)− $2,800 = ($6,300)

Assets Totaled $24,250 and Liabilities Totaled $8,500 at the Beginning