If total assets are increased, there must be a corresponding increase in liabilities or a decrease in stockholders' equity.

Name: If total assets are increased, there must be a corresponding increase in liabilities or a decrease in stockholders' equity.
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Question

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An increase in total assets can also be matched by an increase in stockholders' equity, such as through retained earnings or additional paid-in capital, not just by an increase in liabilities or a decrease in stockholders' equity.

If Total Assets Are Increased, There Must Be a Corresponding