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If total liabilities decreased by $15,000 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 period? A) $25,000 decrease.B) $5,000 decrease.C) $5.000 increase.D) $25,000 increase.

User Jriff
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1 Answer

5 votes

Answer:

The total assets must change by B) $5,000 decrease

Step-by-step explanation:

hi, remember that:


Assets=Liabilities+Equity

If liabilities decrease by $15,000 and equity increases by $10,000...


Assets=(Liabilities-15,000)+(Equity+10,000)


Assets=Liabilities+Equity-5,000

Therefore, to balance this equation, we have to substract -$5,000 from the assets, therefore, the assets decrease by 5,000, which is B)

Best of luck.

User Mahdi Ghajary
by
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