If total assets increase,then either total liabilities or total stockholders' equity must also increase.

Name: If total assets increase,then either total liabilities or total stockholders' equity must also increase.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

This is because the accounting equation states that Assets = Liabilities + Stockholders' equity. Therefore, if Assets increase, either Liabilities or Stockholders' equity must also increase to maintain the balance of the equation.

If Total Assets Increase,then Either Total Liabilities or Total Stockholders