At the beginning of the fiscal year, the balance sheet showed assets of $2,728 and stockholders' equity of $1,672.During the year, assets increased $148 and liabilities decreased $76. Liabilities at the end of the year totaled:
A)$980
B)$1,056
C)$1,672
D)$1,820

Question

Quizplus · Accepted Answer

At the beginning of the year, liabilities = Assets - Stockholders' equity = $2,728 - $1,672 = $1,056. During the year, assets increased by $148, making total assets $2,876. Liabilities decreased by $76, so the new liabilities = $1,056 - $76 = $980.

At the Beginning of the Fiscal Year, the Balance Sheet