If Total Assets Decreased By $29,000 During A Period Of Time And Owner's Equity Increased By $23,000 During The Same Period, Then The Amount And Direction (Increase Or Decrease) Of The Period's Change In Total Liabilities Is _____.

If Total Assets Decreased By $29,000 During A Period Of Time And Owner's Equity Increased By $23,000 During The Same Period, Then The Amount And Direction (Increase Or Decrease) Of The Period's Change In Total Liabilities Is _____.If Total Assets Decreased By $29,000 During A Period Of Time And Owner's Equity Increased By $23,000 During The Same Period

Given That:

Change In Total Assets = $29000 Decrease, Change In Total Owner's Equity = $23000 Increase

Find:

Change In Total Liabilities = ?

Solution:


The change in total liabilities is $52000 decrease, as decrease in total assets (-$29000) minus increase in Owner’s Equity (+$23000) during the same period is equal to $52000 decrease in total liabilities as proved from below Accounting Equation:

              Assets     =    Liabilities                     +   Owner’s Equity

            -$29000    =   Change In Liabilities   +       (+$23000)

Change / Decrease In Total Liabilities = -$29000 - $23000 = $52000 Decrease

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