At the beginning of the fiscal year, the balance sheet showed assets of $1,364 and stockholders' equity of $836. During the year, assets increased $74 and liabilities decreased $38. Stockholders' equity at the end of the year totaled:
A) $836
B) $872
C) $948
D) $1,438

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Stockholders' Equity. Initially, Liabilities = $1,364 - $836 = $528. During the year, Assets increased by $74, making them $1,438, and Liabilities decreased by $38, making them $490. Therefore, Stockholders' Equity = $1,438 - $490 = $948.

At the Beginning of the Fiscal Year, the Balance Sheet