During September 2022, Blowing Rock Diner's total liabilities decreased by $75,000 and its stockholders' equity increased by $15,000.The company's total assets must change by what amount and in what direction during that same period?
A)$60,000 decrease
B)$60,000 increase
C)$75,000 increase
D)$90,000 increase

Question

Quizplus · Accepted Answer

According to the accounting equation (Assets = Liabilities + Equity), if liabilities decrease by $75,000 and equity increases by $15,000, the total change in assets must be a decrease of $60,000 to keep the equation balanced.

During September 2022, Blowing Rock Diner's Total Liabilities Decreased by $75,000