If Total Liabilities Decreased By $75,000 And Stockholders' Equity Increased By $15,000 During A Period Of Time, Then Total Assets Must Change By What Amount And Direction During That Same Period? | MCQ Answer

The correct answer is (A) $60000 Decrease, as decrease in total liabilities by $75000 plus (+) increase in stockholders’ equity by $15000 equal to $60000 Decrease in total assets during the same accounting period as it is proved from below Accounting Equation:

             Assets                       =    Liabilities    +   Stockholders’ Equity

    Change In Total Assets    =   -$75000        +              (+$15000)
 
Change / Decrease in Total Assets   =   -$75000      +      $15000

As We Know:

(-$75000 + $15000 = $60000)

 
Change / Decrease in Total Assets = $60,000 Decrease

So, we can say that total assets decreased by $60,000 in opposite direction during the same accounting period.