A company began the year with assets of $200,000,liabilities of $40,000,and stockholders' equity of $160,000.During the year assets increased $110,000 and stockholders' equity increased $40,000.What was the change in liabilities for the year?

Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' equity
Liabilities = Assets − Stockholders' equity
Change in liabilities = Change in assets − Change in stockholders' equity
= $110,000 − $40,000 = $70,000

A Company Began the Year with Assets of $200,000,liabilities of $40,000,and