If total liabilities decreased by $50,000 and stockholders' equity increased by $10,000 during a period of time,then total assets must change by what amount and direction during that same time period?

Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' Equity
Change in Assets = Change in Liabilities + Change in Stockholders' Equity
= ($50,000)+ $10,000 = ($40,000)

If Total Liabilities Decreased by $50,000 and Stockholders' Equity Increased