If total liabilities decreased by $46,000 during a period of time and stockholders' equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is a
A) $106,000 increase
B) $14,000 increase
C) $14,000 decrease
D) $106,000 decrease

Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' Equity
Assets = -$46,000 + $60,000 = $14,000
Change in assets = +$14,000

If Total Liabilities Decreased by $46,000 During a Period of Time