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1 November, 08:50

If total liabilities increased by $69,000 during a period of time and stockholders' equity decreased by $27,000 during the same period, then the amount and direction (increase or decrease) of the periods change in total assets is a (n) :

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  1. 1 November, 09:19
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    An increase in Total Assets by 42.000.

    Explanation:

    You have to keep in mind that the accounting equation must be always valid:

    Total Assets = Total Liabilities + Equity

    ? = + 69.000 + (-27.000)

    The difference must be reflected in the Total Assets, which is an increase of + 42.000, in this case we keep the equation validity.
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