If total liabilities decreased by $25,000 and stockholders' equity increased by $5,000 during a period of time,then total assets must change by what amount and direction during that same time period?

Question

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According to the accounting equation (Assets = Liabilities + Equity), if liabilities decrease by $25,000 and equity increases by $5,000, assets must decrease by $20,000 to keep the equation balanced.

If Total Liabilities Decreased by $25,000 and Stockholders' Equity Increased