If the liabilities of a company increased by $55,000 during a month and the stockholders' equity decreased by $21,000 during that same month,did assets increase or decrease and by how much?

Question

Quizplus · Accepted Answer

According to the accounting equation (Assets = Liabilities + Stockholders' Equity), if liabilities increase by $55,000 and stockholders' equity decreases by $21,000, the assets must increase by $34,000 to balance the equation.

If the Liabilities of a Company Increased by $55,000 During