If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is
A) a $17,000 increase
B) an $88,000 decrease
C) a $159,000 increase
D) a $159,000 decrease

Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' Equity
-$88,000 = Liabilities + $71,000
Liabilities = -$159,000

If Total Assets Decreased by $88,000 During a Period of Time